Introduction Details of the Section
2.Subsection (2) inserts a new section 139 into the Income Tax (Earnings & Pensions) Act 2003 (ITEPA) which provides that the appropriate percentage, used with the list price to determine the level of chargeable benefit, is based on the CO2 emissions of the car. It also provides for the relevant threshold, below which the appropriate percentage of ten per cent applies, the graduation of bands which trigger an increase in the appropriate percentage, and the upper threshold of 35 per cent. Finally, it provides for adjustments to the appropriate percentage in the case of diesel cars and by any regulations made under section 170(4).
3.Subsection (3) provides for consequential amendments to section 170. Section 170(3A) is removed and section 170(3) is amended to reflect the changes to section 139 described in subsection (2). It also amends the commencing year in which Regulations to adjust the level of the appropriate percentage may be laid.
4.Subsection (4) provides for other consequential amendments to section 59 of the Finance Act (FA) 2006 (which defined QUALECs), and to paragraphs 6, 9 and 10(1) of Schedule 28 to FA 2009 (relating to the table of thresholds).
5.Subsection (5) provides for the commencement date for the amendments made by the new section 139.