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which specifies separate CO2 emissions figures in terms of grams per kilometre | |
driven for different fuels. | |
(2) The car’s CO2 emissions figure is— | |
(a) the lowest figure specified, or | |
(b) if there is more than one figure specified in relation to each fuel, the | 5 |
lowest CO2 emissions (combined) figure specified. | |
(3) This is subject to section 138 (automatic car for a disabled employee). | |
138 Car with a CO2 emissions figure: automatic car for a disabled employee | |
(1) This section applies where— | |
(a) a car with a CO2 emissions figure has automatic transmission (“the | 10 |
automatic car”), | |
(b) at any time in the year when the automatic car is available to the | |
employee (“E”), E holds a disabled person’s badge, and | |
(c) by reason of E’s disability, E must, in the event of wanting to drive a car, | |
drive a car which has automatic transmission. | 15 |
(2) If, under sections 135 to 137, the automatic car’s CO2 emissions figure is more | |
than it would have been if the automatic car had been an equivalent manual | |
car, the CO2 emissions figure for the automatic car is to be the CO2 emissions | |
figure for an equivalent manual car. | |
(3) In subsection (2) “an equivalent manual car” means a car which— | 20 |
(a) is first registered at or about the same time as the automatic car, and | |
(b) does not have automatic transmission, but otherwise is the closest | |
variant available of the make and model of the automatic car. | |
(4) For the purposes of this section a car has automatic transmission if— | |
(a) the driver of the car is not provided with any means by which the driver | 25 |
may vary the gear ratio between the engine and the road wheels | |
independently of the accelerator and the brakes, or | |
(b) the driver is provided with such means, but they do not include— | |
(i) a clutch pedal, or | |
(ii) a lever which the driver may operate manually. | 30 |
(5) For the purposes of this section a car is available to an employee at a particular | |
time if it is then made available, by reason of the employment and without any | |
transfer of the property in it, to the employee. | |
139 Car with a CO2 emissions figure: the appropriate percentage | |
(1) The appropriate percentage for a year for a car with a CO2 emissions figure | 35 |
depends upon whether the car’s CO2 emissions figure exceeds the lower | |
threshold for that year. | |
(2) If the car’s CO2 emissions figure does not exceed the lower threshold for the | |
year, the appropriate percentage for the year is 15% (“the basic percentage”). | |
(3) If the car’s CO2 emissions figure does exceed the lower threshold for the year, | 40 |
the appropriate percentage for the year is whichever is the lesser of— | |
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(a) the basic percentage increased by one percentage point for each 5 | |
grams per kilometre by which the CO2 emissions figure exceeds the | |
lower threshold for the year, and | |
(b) 35%. | |
(4) The lower threshold is— | 5 |
| | Tax year | Lower threshold (in g/km) | | | | | 2003-04 | 155 | | | | | 2004-05 and subsequent tax years | 145 | | |
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(5) If the car’s CO2 emissions figure is not a multiple of 5, it is to be rounded down | |
to the nearest multiple of 5 for the purposes of this section. | 10 |
(6) This section is subject to— | |
(a) section 141 (diesel cars), and | |
(b) any regulations made by the Treasury under section 170(4) (power to | |
reduce the appropriate percentage). | |
140 Car without a CO2 emissions figure: the appropriate percentage | 15 |
(1) The appropriate percentage for a year for a car without a CO2 emissions figure | |
is determined under this section. | |
(2) If the car has an internal combustion engine with one or more reciprocating | |
pistons, the appropriate percentage for the year is— | |
| | Cylinder capacity of car in cubic centimetres | Appropriate percentage | | 20 | | | 1,400 or less | 15% | | | | | More than 1,400 but not more than 2,000 | 25% | | | | | More than 2,000 | 35% | | |
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For this purpose a car’s cylinder capacity is the capacity of its engine as | |
calculated for the purposes of VERA 1994. | 25 |
(3) If subsection (2) does not apply, the appropriate percentage for the year is— | |
(a) 15%, if the car is an electrically propelled vehicle, and | |
(b) 35%, in any other case. | |
(4) For the purposes of this section a vehicle is not an electrically propelled vehicle | |
unless— | 30 |
(a) it is propelled solely by electrical power, and | |
(b) that power is derived from— | |
(i) a source external to the vehicle, or | |
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(ii) an electrical storage battery which is not connected to any | |
source of power when the vehicle is in motion. | |
(5) This section is subject to— | |
(a) section 141 (diesel cars), and | |
(b) any regulations made by the Treasury under section 170(4) (power to | 5 |
reduce the appropriate percentage). | |
141 Diesel cars: the appropriate percentage | |
(1) This section applies to a diesel car first registered on or after 1st January 1998. | |
(2) To determine the appropriate percentage for such a car for a year— | |
Step 1 | 10 |
Determine whether the car is a car with a CO2 emissions figure or a car without | |
a CO2 emissions figure (see section 134). | |
Step 2 | |
Take what would be the appropriate percentage for the car for the year under | |
section 139 or 140 as appropriate. | 15 |
Step 3 | |
The appropriate percentage for the car for the year is whichever is the smaller | |
of— | |
(a) the figure resulting from the addition of 3 percentage points to the | |
figure found under step 2, and | 20 |
(b) 35%. | |
(3) In this section “diesel car” means a car which is propelled solely by diesel. | |
(4) This section is subject to any regulations made by the Treasury under section | |
170(4) (power to reduce the appropriate percentage). | |
Cars: appropriate percentage: first registered before 1st January 1998 | 25 |
142 Car first registered before 1st January 1998: the appropriate percentage | |
(1) The appropriate percentage for a car first registered before 1st January 1998 is | |
determined under this section. | |
(2) If the car has an internal combustion engine with one or more reciprocating | |
pistons, the appropriate percentage for the year is— | 30 |
| | Cylinder capacity of car in cubic centimetres | Appropriate percentage | | | | | 1,400 or less | 15% | | | | | More than 1,400 but not more than 2,000 | 22% | | | | | More than 2,000 | 32% | | |
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For this purpose a car’s cylinder capacity is the capacity of its engine as | |
calculated for the purposes of VERA 1994. | |
(3) If subsection (2) does not apply, the appropriate percentage for the year is— | |
(a) 15%, if the car is an electrically propelled vehicle, and | |
(b) 32%, in any other case. | 5 |
(4) For the purposes of this section a vehicle is not an electrically propelled vehicle | |
unless— | |
(a) it is propelled solely by electrical power, and | |
(b) that power is derived from— | |
(i) a source external to the vehicle, or | 10 |
(ii) an electrical storage battery which is not connected to any | |
source of power when the vehicle is in motion. | |
Cars: unavailability or payments for private use | |
143 Deduction for periods when car unavailable | |
(1) A deduction is to be made from the amount carried forward from step 6 of | 15 |
section 121(1) if the car has been unavailable on any day during the tax year in | |
question. | |
(2) For the purposes of this section a car is unavailable on any day if the day— | |
(a) falls before the first day on which the car is available to the employee, | |
(b) falls after the last day on which the car is available to the employee, or | 20 |
(c) falls within a period of 30 days or more throughout which the car is not | |
available to the employee. | |
(3) The amount of the deduction is given by the formula— | |
![equation: cross[over[char[U],char[Y]],char[A]]](missing.gif) | |
where— | 25 |
U is the number of days in the year on which the car is unavailable, | |
Y is the number of days in that year, and | |
A is the amount carried forward from step 6. | |
(4) This section is subject to section 145 (modification where car temporarily | |
replaced). | 30 |
144 Deduction for payments for private use | |
(1) A deduction is to be made from the provisional sum calculated under step 7 of | |
section 121(1) if, as a condition of the car being available for the employee’s | |
private use, the employee— | |
(a) is required in the tax year in question to pay (whether by way of | 35 |
deduction from earnings or otherwise) an amount of money for that | |
use, and | |
(b) makes such payment. | |
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(2) If the amount paid by the employee in respect of that year is equal to or exceeds | |
the provisional sum, the provisional sum is reduced so that the cash equivalent | |
of the benefit of the car for that year is nil. | |
(3) In any other case the amount paid by the employee in respect of the year is | |
deducted from the provisional sum in order to give the cash equivalent of the | 5 |
benefit of the car for that year. | |
(4) In this section the reference to the car being available for the employee’s | |
private use includes a reference to the car being available for the private use of | |
a member of the employee’s family or household. | |
(5) This section is subject to section 145 (modification where car temporarily | 10 |
replaced). | |
145 Modification of provisions where car temporarily replaced | |
(1) This section applies if — | |
(a) the car normally available to an employee (“the normal car”) is not | |
available to the employee for a period of less than 30 days, | 15 |
(b) another car (“the replacement car”) is made available to the employee | |
in order to replace the normal car for the whole or part of that period, | |
(c) the employee is chargeable to tax in respect of both the normal car and | |
the replacement car by virtue of section 120, and | |
(d) the replacement car meets condition A or B. | 20 |
(2) Condition A is met if the replacement car is not materially better than the | |
normal car. | |
(3) Condition B is met if the replacement car is not made available to the employee | |
under an arrangement of which the main purpose, or one of the main | |
purposes, is to provide the employee with the benefit of a car which is | 25 |
materially better than the normal car. | |
(4) If this section applies— | |
(a) section 143 (deduction for periods when car unavailable) applies so that | |
the replacement car is to be treated as unavailable on the days of the | |
period during which it replaces the normal car, and | 30 |
(b) section 144 (deduction for payments for private use) applies as if the | |
replacement had not been made and the replacement car were a | |
continuation of the normal car. | |
(5) A replacement car is regarded as materially better than the normal car if— | |
(a) it is materially better in quality, or | 35 |
(b) when calculating the cash equivalent of the benefit of the replacement | |
car, the interim sum calculated under step 4 of section 121(1) is | |
materially higher than the interim sum calculated in relation to the | |
normal car. | |
Cars: special cases | 40 |
146 Cars that run on road fuel gas | |
(1) This section applies if the car— | |
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(a) has been manufactured so as to be capable of running on road fuel gas, | |
and | |
(b) is not a car to which section 137 (different CO2 emissions figure for bi- | |
fuel cars) applies. | |
(2) The price of the car found under step 1 of section 121(1) is to be reduced by so | 5 |
much of that price as it is reasonable to attribute to the car being manufactured | |
in such a way as to be capable of running on road fuel gas rather than in such | |
a way as to be capable of running only on petrol. | |
147 Classic cars: 15 years of age or more | |
(1) This section applies in calculating the cash equivalent of the benefit of a car for | 10 |
a tax year if— | |
(a) the age of the car at the end of the year is 15 years or more, | |
(b) the market value of the car for the year is £15,000 or more, and | |
(c) that market value exceeds the amount carried forward from step 3 of | |
section 121(1). | 15 |
(2) For the amount carried forward from step 3 substitute the market value of the | |
car for the tax year in question less any deductions under subsection (6). | |
(3) The market value of a car for a tax year is the price which the car might | |
reasonably have been expected to fetch on a sale in the open market on— | |
(a) the last day of that year, or | 20 |
(b) the last day in that year on which the car is available to the employee if | |
that is earlier. | |
(4) It is assumed that any qualifying accessories available with the car on that day | |
are included in the sale. | |
(5) Subsection (6) applies if the employee contributes a capital sum to expenditure | 25 |
on the provision of— | |
(a) the car, or | |
(b) any qualifying accessory which is taken into account in determining the | |
market value of the car. | |
(6) A deduction is to be made from the market value of the car— | 30 |
(a) for the tax year in which the contribution is made, and | |
(b) for all subsequent years in which the employee is chargeable to tax in | |
respect of the car by virtue of section 120. | |
(7) The amount of the deduction allowed in any tax year is the lesser of— | |
(a) the total of the capital sums contributed by the employee in that year | 35 |
and any earlier years to expenditure on the provision of— | |
(i) the car, or | |
(ii) any qualifying accessory which is taken into account in | |
determining the market value of the car for the tax year in | |
question, and | 40 |
(b) £5,000. | |
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