Part 1

Income tax, capital gains tax and corporate taxes

Income tax provisions relating to cars

Appropriate percentage for cars: tax year 2028-29
5
1
Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans etc) is amended as follows.
2
In section 139 (cars with a CO2 emissions figure: the appropriate percentage), in subsection (1), for the table (as substituted by section 11(7) of FA 2023) substitute—
Car | Appropriate percentage
Car with CO2 emissions figure of 0 | 7%
Car with CO2 emissions figure of 1–50 | 18%
Car with CO2 emissions figure of 51–54 | 19%
Car with CO2 emissions figure of 55–59 | 20%
Car with CO2 emissions figure of 60–64 | 21%
Car with CO2 emissions figure of 65–74 | 22%
.
3
In subsection (3) of section 139 (as amended by section 11(3) of FA 2023)—
a
in paragraph (a), for “21%” substitute “22%”, and
b
in paragraph (b), for “37%” substitute “38%”.
4
In section 140 (cars without a CO2 emissions figure: the appropriate percentage), in subsection (2), for the table substitute—
Cylinder capacity of car in cubic centimetres | Appropriate percentage
1,400 or less | 25%
More than 1,4000 but not more than 2,000 | 36%
More than 2,000 | 38%
.
5
In subsection (3) of section 140—
a
in paragraph (a), for “2%” substitute “7%”, and
b
in paragraph (b), for “37%” substitute “38%”.
6
In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “37%” substitute “38%”.
7
In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—
Cylinder capacity of car in cubic centimetres | Appropriate percentage
1,400 or less | 25%
More than 1,4000 but not more than 2,000 | 36%
More than 2,000 | 38%
.
8
In subsection (3) of section 142, for “37%” substitute “38%”.
9
The amendments made by subsections (2) to (8) have effect for the tax year 2028-29.
10
In consequence of the amendments made by this section, in section 139, omit—
a
in subsection (2), paragraph (b) together with the “and” before it, and
b
subsections (5) to (5B).
11
The amendments made by subsection (10) have effect for the for the tax year 2028-29 and subsequent tax years.