Introduction Background Note
5.Section 139 ITEPA 2003 sets out the basis for calculating the appropriate percentage for cars with a CO2 emissions figure. The appropriate percentage multiplied by the list price of the car (adjusted for any taxable accessories) provides the level of chargeable benefit for company car tax for employees and of Class 1A NICs for employers.
6.Section 141 ITEPA 2003 sets out the basis for calculating the appropriate percentage for diesel cars. Under section 24(11) of Finance Act 2014, section 141 will be repealed with effect from 6 April 2016.