Introduction Background Note
11.Section 139 ITEPA 2003 sets out the basis for calculating the appropriate percentage for cars with CO2 emissions. 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.
12.From 6 April 2016, the graduated table of bands for taxing the benefit of a company car will provide for a two percentage point increase for each band, starting at 7 per cent for cars emitting 0-50 grams of CO2 per kilometre to a maximum of 37 per cent for cars emitting 200 grams of CO2 per kilometre or more.
13.Section 140 ITEPA sets out the basis for calculating the appropriate percentage for cars without CO2 emissions and all but the higher band (which was increased in section 23(8) of the Finance Act 2013) have also been increased.
14.Section 141 ITEPA 2003 sets out the diesel supplement. From 6 April 2016, the         3 percentage point diesel supplement set out in section 141 ITEPA will be repealed, so that diesel cars will be subject to the same level of tax as petrol cars.
15.Section 142 ITEPA 2003 sets out the basis for calculating the appropriate percentage for cars registered before 1 January 1998, and these have also been increased in line with other changes.