Income Tax (Earnings and Pensions) Act 2003 section 140

Car without a CO2 emissions figure: the appropriate percentage

Section 140 sets out how to determine the appropriate percentage used in calculating the taxable car benefit for company cars that do not have a CO2 emissions figure.

• Cars with a reciprocating piston engine are taxed at 24%, 35% or 37% depending on whether their cylinder capacity is up to 1,400cc, between 1,400cc and 2,000cc, or over 2,000cc respectively.
• Cars that cannot emit CO2 under any circumstances (such as fully electric vehicles) are taxed at an appropriate percentage of 2%.
• Any other car without a CO2 emissions figure that does not fall into the above categories is taxed at 37%.
• These percentages are subject to adjustment for certain diesel cars and to any Treasury regulations that may reduce the appropriate percentage.