Income Tax (Earnings and Pensions) Act 2003 section 141

Diesel cars: the appropriate percentage

Section 141 explains how to determine the appropriate percentage used to calculate the taxable benefit for certain diesel company cars, applying a diesel supplement on top of the standard CO2-based percentage.

• The section applies to diesel-only cars first registered on or after 1 January 1998 but before 1 September 2017, and to those registered on or after 1 September 2017 that do not meet the Euro 6d emissions standard.
• The appropriate percentage is calculated by first finding the standard CO2-based percentage for the car, then adding a diesel supplement of 4 percentage points, subject to an overall cap of 37%.
• A car only meets the Euro 6d standard if its EC certificate of conformity specifically states Euro 6d — a certificate showing Euro 6d-TEMP does not qualify.
• The Treasury has the power to make regulations to reduce the appropriate percentage, overriding the figures produced by this section.