Income Tax (Earnings and Pensions) Act 2003 section 139

Cars with a CO2 emissions figure: the appropriate percentage

Section 139 sets out how to determine the "appropriate percentage" used to calculate the taxable benefit for a company car, based on the car's CO2 emissions figure and, for low-emission cars, its electric-only driving range.

• Zero-emission cars attract a 2% appropriate percentage; cars emitting 1–50 g/km CO2 are banded by electric range from 2% (130+ miles) up to 14% (under 30 miles)
• Cars with CO2 emissions of 51–74 g/km are assigned fixed percentages rising in steps from 15% to 19%
• Cars with CO2 emissions of 75 g/km or more start at 20% and increase by one percentage point for every additional 5 g/km, subject to a maximum cap of 37%
• The electric range figure must be based on WLTP values for cars first registered on or after 6 April 2020, but on non-WLTP values for cars registered before that date

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