Introduction Details of the Section
2.Subsection (1) introduces changes to section 139 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) as amended by section 17 of the Finance Act 2012 with effect from 6 April 2014.
3.Subsections (2), (5) and (6) amend sections 139(2), 139(3) and 139(4)(a) respectively to remove otiose phrasing.
4.Subsection (3) provides for the two new rates of appropriate percentage for low emissions vehicles. Section 139(2)(a), which dealt with the special regime for ultra low emissions cars for tax years up to and including 2014-15 is replaced by an appropriate percentage of 5 per cent for cars with CO emissions 0 to 50 grams per kilometre. New section 139(2)(aa) provides an appropriate percentage of 9 per cent for cars with CO emissions of 51 to 75 grams per kilometre.
5.Subsections (4), (5), and (6) provide for the increase to the level of the appropriate percentage by 2 per cent in sections 139(2) (cars with engine emissions below that of the relevant threshold, but greater than 75 grams CO per kilometre); an increase in the level of the appropriate percentage for the relevant threshold in section 139(3); and for an increase in the maximum level of the appropriate percentage 139(4)(b).
6.Subsections (7), (8) and (9) removes the reference to and definition of the special percentage in section 140 ITEPA for cars without a CO emissions figure and also provides for an appropriate percentage of 5 per cent for cars which are not, under any circumstances, capable of emitting CO emissions when being driven.
7.Subsection (10) provides that this amendment has effect for 2015-16 and subsequent tax years.