Introduction Details of the Section
3.Subsection (1) introduces changes to Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans and related benefits). Subsection (2) amends section 133 ITEPA which sets out the legislative references for finding the appropriate percentage, and removes the reference to diesel cars to which section 141 applies (relating to the diesel supplement).
4.Subsection (3) introduces the changes to section 139 ITEPA.  Subsection (4) increases the appropriate percentage for cars with a CO2 emission figure between 0 – 50 grams per kilometre (g/km) from 5 per cent to 7 per cent; for 51 – 75 g/km from 9 per cent to                11 per cent and for 76 – 94 g/km from 13 per cent to 15 per cent.  Subsection (5) increases the appropriate percentage of the relevant threshold from 14 per cent to 16 per cent.  Subsection (6) removes the reference to diesel cars in section 139(7)(a).
5.Subsection (7) introduces changes to section 140 ITEPA.  Subsection (8) increases the appropriate percentage for cars without a CO2 emissions figure so that engines with a cylinder capacity of 1,400 or less increases from 15 per cent to  16 per cent and those with a cylinder capacity of 1401-2000 increases from 25 per cent to 27 per cent.  Subsection (9) increases the appropriate percentage from 5 per cent to 7 per cent for cars which are not, under any circumstances, capable of emitting CO2 emissions when being driven.     Subsection (10) removes the reference to diesel cars in section 140(5).
6.Subsection (11) repeals section 141 ITEPA 2003.
7.Subsection (12) introduces changes to section 142 ITEPA.  Subsection (13) amends section 142(2).  It increases the appropriate percentage for cars first registered before January 1998 with an internal combustion engine with a cylinder capacity of 1,400 or less from        15 per cent to 16 per cent; from 22 per cent to 27 per cent for cars with a cylinder capacity of 1401 – 2,000 and from 32 per cent to 37 per cent for cars with a cylinder capacity of 2001 or more.
8.Subsection (14) amends section 142(3) and provides an increase for cars without a cylinder capacity from 32 per cent to 37 per cent.
9.Subsections (15) and (16) provide for consequential amendments.
10.Subsection (17) provides that these amendments have effect for the tax year 2016-17 and subsequent tax years.