Income Tax (Earnings and Pensions) Act 2003 section 133

How to determine the "appropriate percentage"

Section 133 explains how to determine the "appropriate percentage" used to calculate the taxable cash equivalent of a company car benefit, depending on when the car was first registered and its emissions characteristics.

• The appropriate percentage for a company car depends primarily on the date the car was first registered
• For cars first registered on or after 1 January 1998, the percentage depends on whether or not the car has a CO2 emissions figure
• For cars first registered before 1 January 1998, a separate set of rules applies to determine the percentage
• The appropriate percentage is a key factor in the calculation of the taxable benefit arising from the private use of a company car