Introduction Details of the Section
4.Subsections (1), (2) and (7) set out which parts of the legislation are most affected by the amendments.
5.Subsection (3) substitutes a new subsection (1A) to section 139 of ITEPA which sets out the definition of a “qualifying low emissions car”.
6.Subsection (4) amends current section 139(1B) of ITEPA to provide for an appropriate percentage of 5 per cent where a car’s CO2 emissions do not exceed 75 grams per kilometre.
7.Subsection (5) amends current section 139(5) of ITEPA with the effect that the rounding mechanism, used where the level of the CO2 emissions is not a multiple of 5, only applies to cars which are not qualifying low emissions cars and have not exceeded the level at which the appropriate percentage of 35 per cent is set. As a result, section 139(5A) of ITEPA is no longer needed, and this is removed by subsection (6).
8.Subsection (8) amends section 140(3) of ITEPA to provide for the special percentage for all cars which cannot produce CO2 emissions under any circumstances when being driven.
9.Subsection (9) inserts a new section 140(3A) in ITEPA which sets out the level of the special percentage for the tax years 2010-11 to 2014-15 and for the tax year 2015-16 and subsequent years. The definition of electrically propelled vehicle is no longer required and is removed by subsection (10).
10.Subsection (11) amends section 149(4) of ITEPA so that no car fuel benefit charge applies where energy is supplied for a car which cannot produce CO2 emissions under any circumstances when being driven.
11.Subsection (12) replaces subsections (1) to (3) of section 155 of ITEPA in respect of vans with new subsections (1) and (2).
12.New section 155(1) provides for the nil cash equivalent and new section 155(2) sets out the circumstances where the cash equivalent applies.
13.Subsections (13), (14) and (15) provide for consequential amendments to sections 156(1), 158(1), 160 and 170(1A) of ITEPA as a result of amending section 155. Subsection (16) is a further consequential amendment which omits paragraph 7 of section 59 of the Finance Act (FA) 2006.
14.Subsection (17) omits paragraph 7 of Schedule 28 to FA 2009 which set a new appropriate percentage for company cars wholly electrically propelled with effect from the tax year 2011-12. This is superseded by this sectionand so is no longer required.
15.Subsections (18) and (19) provide for the dates from which the amendments made by subsections (2) to (16) and subsection (17) are to have effect.
16.Subsection (20) provides for the amendment of section 142 of ITEPA made by paragraph 8 of Schedule 28 to FA 2009 for cars first registered before 1 January 1998 to be effective from the tax year 2010-11 and onwards, one year earlier than provided for in that Act.