Source: http://www.legislation.gov.uk/ukpga/2009/10/schedule/11?timeline=true
Timestamp: 2016-05-02 22:51:05
Document Index: 116927776

Matched Legal Cases: ['art. 3', 'art. 2', 'art. 22', 'art. 5', 'art. 1', 'art. 2', 'art. 3', 'art. 3', 'art. 4', 'art. 5', 'art. 6', 'art. 7', 'art. 8', 'art. 4', 'art. 8', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art 1', 'art 2', 'art 10', 'art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 1']

Skip to main contentSkip to navigationlegislation.gov.ukThe National ArchivesHelpSite MapAccessibilityContact UsCymraegHomeAbout UsBrowse LegislationNew LegislationChanges To LegislationSearch LegislationSearch LegislationTitle: (or keywords in the title)Year:Number:Type:All Legislation (excluding draft)All Primary Legislation UK Public General Acts UK Local Acts Acts of the Scottish Parliament Acts of the National Assembly for Wales Measures of the National Assembly for Wales Church Measures Acts of the Northern Ireland Assembly Acts of the Old Scottish Parliament Acts of the English Parliament Acts of the Old Irish Parliament Acts of the Parliament of Great Britain Northern Ireland Orders in Council Measures of the Northern Ireland Assembly Acts of the Northern Ireland ParliamentAll Secondary Legislation UK Statutory Instruments Wales Statutory Instruments Scottish Statutory Instruments Northern Ireland Statutory Rules Church Instruments UK Ministerial Orders UK Statutory Rules and OrdersAll Draft Legislation UK Draft Statutory Instruments Scottish Draft Statutory Instruments Northern Ireland Draft Statutory RulesAll Impact Assessments UK Impact AssessmentsSearchAdvanced SearchFinance Act 2009You are here:2009 c. 10SCHEDULE 11Table of ContentsContentExplanatory NotesMore ResourcesPrevious: ScheduleNext: SchedulePlain ViewPrint OptionsWhat VersionLatest available (Revised)Original (As enacted)Advanced FeaturesShow Geographical Extent(e.g. England, Wales, Scotland, Northern Ireland)Show Timeline of Changes Opening OptionsOpen whole ActOpen Act without schedulesOpen Schedules onlyMore ResourcesOriginal Print PDFCorrection Slip - 15/10/2010View moreChanges over time for: SCHEDULE 11Alternative versions:21/07/2009 - AmendmentChanges to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Finance Act 2009. Any changes that have already been made by the team appear in the content and are referenced with annotations.Changes to LegislationRevised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.Changes and effects yet to be applied to :Changes and effectsThis section lists the changes and effects yet to be applied to the specific provision you are viewing.specified provision(s) amendment to earlier commencing SI 2011/701 art. 3 and 4 by S.I. 2011/2401 art. 2(2)specified provision(s) amendment to earlier commencing SI 2011/702, art. 22 by S.I. 2014/3269 art. 5specified provision(s) amendment to earlier commencing SI 2014/3269 art. 1 and 3 by S.I. 2014/3346 art. 2Changes and effects yet to be applied to the whole Act associated Parts and Chapters:Changes and effectsThis section lists the changes and effects yet to be applied to the whole Act, associated Parts and Chapters where applicable. This includes any insertions of whole new Parts, Chapters or provisions yet to be inserted into this Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing.Blanket amendment words substituted by S.I. 2011/1043 art. 3 4Whole provisions yet to be inserted into this Act (including any effects on those provisions):s. 101(10)(11) inserted by 2014 c. 26 Sch. 22 para. 20(2)s. 102(4)(za) inserted by 2010 c. 33 Sch. 9 para. 3(3)s. 103A inserted by 2010 c. 33 Sch. 9 para. 4Sch. 16 para. 12(3) inserted by 2012 c. 14 Sch. 20 para. 33(b)Sch. 35 para. 5A inserted by 2010 c. 13 s. 48(4)Sch. 35 para. 16A inserted by 2010 c. 13 s. 48(6)Sch. 35 para. 7(1)(g) and word inserted by S.I. 2010/429 art. 3(1)(b)Sch. 35 para. 8(4A)-(4G) inserted by S.I. 2010/429 art. 4(2)Sch. 35 para. 9(4A)-(4F) inserted by S.I. 2010/429 art. 5(2)Sch. 35 para. 10(5A)-(5D) inserted by S.I. 2010/429 art. 6(2)Sch. 35 para. 11(3A)-(3C) inserted by S.I. 2010/429 art. 7(2)Sch. 35 para. 11(13A) and cross-heading inserted by S.I. 2010/429 art. 8Sch. 53 para. 2A-2D and cross-heading inserted by 2010 c. 33 Sch. 9 para. 7Sch. 53 para. 6A and cross-heading inserted by 2010 c. 33 Sch. 9 para. 8Sch. 53 para. 11A 11B and cross-heading inserted by 2010 c. 33 Sch. 9 para. 17Sch. 53 para. 14A and cross-heading inserted by 2010 c. 33 Sch. 9 para. 18Sch. 53 para. 3A inserted by 2013 c. 29 Sch. 51 para. 7(3)Sch. 54 Pt. A1 inserted by 2010 c. 33 Sch. 9 para. 10Sch. 54 para. 9B 9C and cross-heading inserted by 2010 c. 33 Sch. 9 para. 11Sch. 54 para. 12A 12B and cross-heading inserted by 2010 c. 33 Sch. 9 para. 19Sch. 54 para. 9A and cross-heading inserted by S.I. 2010/157 art. 4(2)Sch. 54 Pt. 2 para. 9D and cross-heading inserted by S.I. 2011/1037 art. 8Sch. 54 para. 9D repealed by 2012 c. 14 Sch. 39 para. 28(1)Sch. 54A inserted by 2010 c. 33 Sch. 9 para. 12Sch. 54A para. 2(2)(f)(g) inserted by 2013 c. 29 Sch. 18 para. 16Sch. 54A para. 2(2)(h) and word inserted by 2014 c. 26 Sch. 4 para. 14(a)Sch. 54A para. 2(2)(d) word omitted by 2013 c. 29 Sch. 18 para. 16Sch. 54A para. 2(2)(f) word omitted by 2014 c. 26 Sch. 4 para. 14(a)Sch. 54A para. 2(4) word substituted by 2014 c. 26 Sch. 4 para. 14(b)Sch. 55 para. 6C(5)(7)-(9)(11) Appointed Day(s) by S.I. 2014/2395 art. 2(1)(a)Sch. 55 para. 6C(1)-(4)(6)(10) Appointed Day(s) by S.I. 2014/2395 art. 2(1)(b)Sch. 55 para. 6B Appointed Day(s) by S.I. 2014/2395 art. 2(1)(b)Sch. 55 para. 6D Appointed Day(s) by S.I. 2014/2395 art. 2(1)(b)Sch. 55 para. 13A-13J and cross-heading amendment to earlier affecting provision 2010 c. 33 Sch. 10 para. 7 by 2014 c. 26 Sch. 22 para. 21(3)Sch. 55 para. 6(3A) inserted by 2010 c. 13 Sch. 10 para. 11(3)Sch. 55 para. 6(4A) inserted by 2010 c. 13 Sch. 10 para. 11(5)Sch. 55 para. 6(6) inserted by 2010 c. 13 Sch. 10 para. 11(6)Sch. 55 para. 6(6A) inserted by 2010 c. 13 Sch. 10 para. 12Sch. 55 para. 17(4) inserted by 2010 c. 13 Sch. 10 para. 14(b)Sch. 55 para. 13A-13J and cross-heading inserted by 2010 c. 33 Sch. 10 para. 7Sch. 55 para. 18(5) inserted by 2010 c. 33 Sch. 10 para. 10Sch. 55 para. 1(4A) inserted by 2013 c. 29 Sch. 50 para. 3(b)Sch. 55 para. 6B-6D and cross-heading inserted by 2013 c. 29 Sch. 50 para. 6Sch. 55 para. 27(2A) inserted by 2013 c. 29 Sch. 50 para. 9(2)Sch. 55 para. 27(3A) inserted by 2013 c. 29 Sch. 50 para. 9(3)Sch. 55 para. 17A 17B and cross-heading inserted by 2013 c. 29 Sch. 51 para. 8Sch. 55 para. 17(c) and word inserted by 2014 c. 26 Sch. 33 para. 5Sch. 55 para. 6(3A)(za) inserted by 2015 c. 11 Sch. 20 para. 15(2)(a)Sch. 55 para. 6(4A)(za) inserted by 2015 c. 11 Sch. 20 para. 15(3)(a)Sch. 55 para. 6A(4A)(4B) inserted by 2015 c. 11 Sch. 20 para. 16(5)Sch. 55 para. 6AA 6AB inserted by 2015 c. 11 Sch. 20 para. 17Sch. 55 para. 17(4)(ba) inserted by 2015 c. 11 Sch. 20 para. 19Sch. 55 para. 6A(8) omitted by 2015 c. 11 Sch. 20 para. 16(8)Sch. 55 para. 18(5)-(7) substituted for Sch. 55 para. 18(5) by 2013 c. 29 Sch. 50 para. 7Sch. 55 para. 6A(A1)(1) substituted for Sch. 55 para. 6A(1) by 2015 c. 11 Sch. 20 para. 16(2)Sch. 55 para. 17(4)(b) word omitted by 2015 c. 11 Sch. 20 para. 19Sch. 55 para. 2(1)(b) word substituted by 2012 c. 14 Sch. 24 para. 32(a)Sch. 55 para. 13A(1) word substituted by 2012 c. 14 Sch. 24 para. 32(b)Sch. 55 para. 13F(1) word substituted by 2012 c. 14 Sch. 24 para. 32(c)Sch. 55 para. 6(3A)(a) word substituted by 2015 c. 11 Sch. 20 para. 15(2)(b)Sch. 55 para. 6(4A)(a) word substituted by 2015 c. 11 Sch. 20 para. 15(3)(b)Sch. 55 para. 6(6) word substituted by 2015 c. 11 Sch. 20 para. 15(4)Sch. 55 para. 6A(2)(a) words inserted by 2015 c. 11 Sch. 20 para. 16(3)(a)Sch. 55 para. 6A(3)(a) words inserted by 2015 c. 11 Sch. 20 para. 16(4)(a)Sch. 55 para. 6A(6)(a) words inserted by 2015 c. 11 Sch. 20 para. 16(7)Sch. 55 para. 6A(9) words inserted by 2015 c. 11 Sch. 20 para. 16(9)Sch. 55 para. 6A(2)(c) words substituted by 2015 c. 11 Sch. 20 para. 16(3)(b)Sch. 55 para. 6A(3)(c) words substituted by 2015 c. 11 Sch. 20 para. 16(4)(b)Sch. 55 para. 6A(5) words substituted by 2015 c. 11 Sch. 20 para. 16(6)Sch. 56 para. 8-8J and cross-heading amendment to earlier affecting provision 2010 c. 33 Sch. 11 para. 7 by 2014 c. 26 Sch. 22 para. 22(6)Sch. 56 para. 1(5) inserted by 2010 c. 33 Sch. 11 para. 2(3)Sch. 56 para. 2A and cross-heading inserted by 2010 c. 33 Sch. 11 para. 4Sch. 56 para. 3(1)(d) and word inserted by 2010 c. 33 Sch. 11 para. 5(5)Sch. 56 para. 3(1A) inserted by 2010 c. 33 Sch. 11 para. 5(6)Sch. 56 para. 8A-8J and cross-heading inserted by 2010 c. 33 Sch. 11 para. 7Sch. 56 para. 8K and cross-heading inserted by 2010 c. 33 Sch. 11 para. 8Sch. 56 para. 11(4A) inserted by 2010 c. 33 Sch. 11 para. 9(3)Sch. 56 para. 6(8A)(8B) inserted by 2013 c. 29 Sch. 50 para. 12(6)Sch. 56 para. 6(9A) and cross-heading inserted by 2013 c. 29 Sch. 50 para. 13Sch. 56 para. 3(1)(aa) inserted by 2015 c. 11 s. 104(3)Sch. 56 para. 11(4A)(4B) substituted for Sch. 56 para. 11(4A) by 2013 c. 29 Sch. 50 para. 14(2)Sch. 56 para. 6(3)-(7A) substituted for Sch. 56 para. 6(3)-(7) by 2013 c. 29 Sch. 50 para. 12(4)Sch. 56 para. 8A(1) word substituted by 2012 c. 14 Sch. 24 para. 34(d)Sch. 56 para. 8F(1) word substituted by 2012 c. 14 Sch. 24 para. 34(e)Sch. 56 para. 6(2)(a) words inserted by 2013 c. 29 Sch. 50 para. 12(3)(b)Sch. 56 para. 6(2)(b) words inserted by 2013 c. 29 Sch. 50 para. 12(3)(c)Sch. 56 para. 6(2)(c) words inserted by 2013 c. 29 Sch. 50 para. 12(3)(d)Sch. 56 para. 6(2)(d) words inserted by 2013 c. 29 Sch. 50 para. 12(3)(e)Sch. 61 para. 1(1A) inserted by 2012 c. 11 Sch. 3 para. 31(4)Sch. 61 para. 1(1A) substituted by 2014 c. 29 Sch. 2 para. 14(3)Commencement Orders yet to be applied to the Finance Act 2009Commencement OrdersThis section lists the commencement orders yet to be applied to the whole Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing. Where applicable the commencement orders are listed under two headings, firstly those that bring some part of the Act you are viewing into force and secondly, those that bring into force legislation that affects some part of the legislation you are viewing. If you are viewing a prospective version or there is a prospective version available there may be commencement orders listed here that are relevant to the provision you are viewing.Commencement Orders bringing legislation that affects this Act into force:S.I. 2011/132 art. 2 3 commences (2010 c. 33)S.I. 2011/703 art. 2 3 commences (2010 c. 33)S.I. 2011/975 art. 2 commences (2010 c. 13)S.I. 2011/2391 art. 2(a) commences (2010 c. 33)Section 30SCHEDULE 11E+W+S+N.I.Tax relief for business expenditure on cars and motor cyclesThis schedule has no associated Explanatory Notes Part 1 E+W+S+N.I.Capital allowancesPlant and machinery allowances for cars and motor cyclesE+W+S+N.I.1Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.E+W+S+N.I.2In section 38B (general exclusions from AIA qualifying expenditure), in general exclusion 2, for “81” substitute “ 268A ”.E+W+S+N.I.3In section 46(2) (general exclusions from first year allowances), in general exclusion 2, for “81” substitute “ 268A ”.E+W+S+N.I.4Omit sections 74 to 79 (cars above the cost threshold).E+W+S+N.I.5Omit section 81 (extended meaning of “car”) and section 82 (qualifying hire cars).E+W+S+N.I.6In section 84 (cases in which short-life asset treatment is ruled out), in the Table, in item 3, in the first column, for “81” substitute “ 268A ”.E+W+S+N.I.7(1)Section 104A (special rate expenditure) is amended as follows.E+W+S+N.I.(2)In subsection (1)—(a)in paragraph (a), after “the” insert “ first ”,(b)omit “and” at the end of paragraph (c), and(c)insert at the end “, and (e)expenditure incurred on or after the second relevant date on the provision of a car that is not a main rate car.”
(3)In subsection (2), after “The” insert “ first ”.(4)After that subsection insert—“(3)The second relevant date is—
(a)for corporation tax purposes, 1 April 2009, and
(b)for income tax purposes, 6 April 2009.
“main rate car” has the meaning given in section 104AA.”
8After that section insert—E+W+S+N.I.“104AAMeaning of “main rate car”(1)“Main rate car” means—
(4)Condition B is that the applicable CO2 emissions figure in relation to the car does not exceed 160 grams per kilometre driven.
“electrically-propelled” has the meaning given in section 268B.”
9After section 104E insert—E+W+S+N.I.“104FSpecial rate cars: discontinued activity continued by relevant company(1)This section applies if—
(a)a company (“the taxpayer”) has incurred special rate expenditure within section 104A(1)(e) (expenditure on a car other than a main rate car) to which section 104C applies (allocation to special rate pool),
(b)the qualifying activity carried on by the taxpayer is permanently discontinued, and
(c)conditions A, B and C are met.
(2)Condition A is that the qualifying activity carried on by the taxpayer consisted of or included (other than incidentally) making cars available to other persons.
(3)Condition B is that, at any time in the 6 months after the taxpayer's qualifying activity is permanently discontinued, the qualifying activity of a group relief company consists of or includes (other than incidentally) making cars available to other persons.
(4)Condition C is that the balancing allowance (“SBA”) to which the taxpayer would be entitled (but for this section) in respect of the special rate pool is greater than—
BC is the total of the balancing charges (if any) to which the taxpayer is liable for the final chargeable period in respect of any pool, and
OBA is the total of the balancing allowances to which the taxpayer is entitled for that period in respect of any pool other than the special rate pool.
For the purposes of this section if BC – OBA is a negative amount it is to be treated as if it were nil.
(5)The balancing allowance to which the taxpayer is entitled in respect of the special rate pool is reduced to an amount equal to BC — OBA.
(6)The relevant company is to be treated as having incurred qualifying expenditure within section 104A(1)(e) (“notional expenditure”), whether or not the relevant company owns cars previously owned by the taxpayer.
(7)The amount of the notional expenditure is an amount equal to the amount by which SBA exceeds BC — OBA.
(8)The relevant company is to be treated as having incurred the notional expenditure on the day after the end of the taxpayer's final chargeable period.
(9)If part of the chargeable period in which the relevant company is treated as incurring expenditure under this section (“the acquisition period”) overlaps with the taxpayer's penultimate chargeable period—
(a)the part of the expenditure which is proportional to that part of the acquisition period is not to be taken into account in determining the relevant company's available qualifying expenditure for the acquisition period, but
(b)this does not prevent that part of the expenditure being taken into account in determining the relevant company's available qualifying expenditure for any subsequent chargeable period.
“group relief company” means—
(a)a company to which group relief under Chapter 4 of Part 10 of ICTA would be available (on the making of a claim) in respect of balancing allowances surrendered by the taxpayer in the taxpayer's final chargeable period, and
(b)a company to which such relief would be available (on the making of a claim) in respect of balancing allowances surrendered by a company within paragraph (a);
“main rate car” has the meaning given in section 104AA;
“penultimate chargeable period” means the chargeable period preceding the final chargeable period;
“the relevant company” means the group relief company mentioned in subsection (3) or, if there is more than one, the one—
(a)nominated by the taxpayer not more than 6 months after the end of the taxpayer's final chargeable period, or
(b)in the absence of such a nomination, nominated by Her Majesty's Revenue and Customs.”
10After section 208 insert—E+W+S+N.I.“208ACars: disposal value in avoidance cases(1)This section applies if—
(5)In this section “car” has the meaning given in section 268A.”
11After section 268 insert—E+W+S+N.I.“Cars etcE+W+S+N.I.268AMeaning of “car” and “motor cycle”(1)In this Part “car” means a mechanically propelled road vehicle other than—
(b)a vehicle of a construction primarily suited for the conveyance of goods or burden of any description, or
(c)a vehicle of a type not commonly used as a private vehicle and unsuitable for such use.
(2)In this Part “motor cycle” has the meaning given by section 185(1) of the Road Traffic Act 1988.
268BElectrically-propelled vehiclesFor the purposes of this Part a vehicle is electrically-propelled only if—
268CTerms relating to emissions(1)In this Part “qualifying emissions certificate”, in relation to a vehicle, means an EC certificate of conformity, or a UK approval certificate, that specifies—
(a)in the case of a vehicle other than a bi-fuel vehicle, a CO2 emissions figure in terms of grams per kilometre driven, or
(b)in the case of a bi-fuel vehicle, separate CO2 emissions figures in terms of grams per kilometre driven for different fuels.
(2)For the purposes of this Part, in relation to a vehicle other than a bi-fuel vehicle, the applicable CO2 emissions figure is—
(a)where the qualifying emissions certificate specifies only one CO2 emissions figure, that figure, and
(3)For the purposes of this Part, in relation to a bi-fuel vehicle, the applicable CO2 emissions figure is—
(a)where the qualifying emissions certificate specifies more than one CO2 emissions figure in relation to each fuel, the lowest CO2 emissions (combined) figure specified, and
“bi-fuel”, in relation to a vehicle, means capable of being propelled by—
(a)petrol and road fuel gas, or
(b)diesel and road fuel gas;
“petrol” has the meaning given by Article 2 of Directive 98/70/EC of the European Parliament and of the Council;
“road fuel gas” has the same meaning as in section 171(1) of ITEPA 2003;
(b)Article 31A(4) or (5) of the Road Traffic (Northern Ireland) Order 1981 (S.I. 1981/154 (N.I. 1)).”
Consequential amendments of CAA 2001E+W+S+N.I.12CAA 2001 is amended as follows.E+W+S+N.I.13In section 33 (personal security), omit subsection (7).E+W+S+N.I.14(1)Section 45D (expenditure on cars with low carbon dioxide emissions) is amended as follows.E+W+S+N.I.(2)In subsection (1), for paragraph (c) substitute—“(c)the car—
(i)is electrically-propelled, or
(ii)has low CO2 emissions, and”.
(3)In subsection (2), for “a car with low CO2 emissions is a car which” substitute “ a car has low CO2 emissions if it ”.(4)In subsection (3), for the words from “an EC certificate” to the end substitute “ a qualifying emissions certificate. ”(5)In subsection (4), for “in the case of” substitute “ in relation to ”.(6)Omit subsections (5) and (6).(7)In subsection (8)—(a)after “car” insert “ is to a car within the meaning of section 268A, except that it ”, and(b)omit paragraph (b) (and the “but” before it).(8)Omit subsections (9) and (10).(9)After subsection (10) insert—“(11)In this section—
15In section 54(3) (single asset pools), omit “section 74 (car above the cost threshold)”.E+W+S+N.I.16In section 55(6) (determination of entitlement or liability), after “subject to” insert “ section 104F (special rate cars: discontinued activity continued by relevant company) and ”.E+W+S+N.I.17In section 65(3) (the final chargeable period), for “sections 77(1) and” substitute “ section ”.E+W+S+N.I.18In section 66 (list of provisions about disposal values)—E+W+S+N.I.(a)omit the entry in the list relating to section 79, and(b)insert at the appropriate place—“section 208Acars: disposal value in avoidance cases”.19(1)In section 84 (cases in which short-life asset treatment is ruled out), the Table is amended as follows.E+W+S+N.I.(2)In item 3, for the words in the second column substitute “The car is a hire car for a disabled person (as defined by section 268D).”(3)In item 4, in the second column, insert “The expenditure is incurred on the provision of a car which is a hire car for a disabled person (as defined by section 268D)”.(4)In item 5, in the second column, for “within section 82(4) (cars hired out to persons receiving disability allowances etc)” substitute “ a hire car for a disabled person (as defined by section 268D) ”.20(1)Section 86 (short-life assets) is amended as follows.E+W+S+N.I.(2)In subsection (2)(b), for “main pool” substitute “ appropriate pool ”.(3)After subsection (4) insert—“(5)In subsection (2)(b) “appropriate pool” means—
(a)in the case of expenditure incurred on the provision of a car that is not a main rate car (as defined by section 104AA), the special rate pool, and
(b)in any other case, the main pool.”
21In section 96 (expenditure on cars excluded from being long-life asset expenditure), for “car (as defined by section 81)” substitute “ car or motor cycle (as defined by section 268A) ”.E+W+S+N.I.22After section 268C (inserted by this Part of this Schedule) insert—E+W+S+N.I.“268DHire cars for disabled persons(1)For the purposes of this Part a car is a hire car for a disabled person if it is provided wholly or mainly for hire to, or the carriage of, disabled persons in the ordinary course of a trade.
(d)a payment that appears to the Treasury to be similar to those mentioned in paragraphs (a) to (c) and that is specified by order made by the Treasury.”
23(1)Part 2 of Schedule 1 (defined expressions) is amended as follows.E+W+S+N.I.(2)In the entry relating to “car (in Part 2)”, for “section 81” substitute “ section 268A ”.(3)Insert at the appropriate places—“applicable CO2 emissions figure (in Part 2)section 268C”“electrically-propelled (in Part 2)section 268B”“hire car for a disabled person (in Part 2)section 268D”“motor cycle (in Part 2)section 268A”“qualifying emissions certificate (in Part 2)section 268C”.24In Schedule 3 (transitionals and savings), omit paragraph 19 (cars above the cost threshold) and the headings immediately before it.E+W+S+N.I.Consequential repealE+W+S+N.I.25In consequence of the amendments made by this Part of this Schedule, in FA 2002, in Schedule 19, omit paragraph 6.E+W+S+N.I.Commencement and transitionals: introductionE+W+S+N.I.26For the purposes of this Part of this Schedule—E+W+S+N.I.(a)the first relevant date is—(i)for corporation tax purposes, 1 April 2009, and(ii)for income tax purposes, 6 April 2009,(b)the second relevant date is—(i)for corporation tax purposes, 1 August 2009, and(ii)for income tax purposes, 6 August 2009, and(c)the third relevant date is—(i)for corporation tax purposes, 1 April 2014, and(ii)for income tax purposes, 6 April 2014.27(1)For the purposes of this Part of this Schedule “new expenditure” means—E+W+S+N.I.(a)expenditure incurred on or after the first relevant date, and(b)expenditure incurred before that date to which sub-paragraph (2) applies,and expenditure that is not new expenditure is “old expenditure”.
(2)This sub-paragraph applies to expenditure if—(a)it is incurred under an agreement for the provision of a car entered into after 8 December 2008, and(b)under that agreement the car is not required to be made available before the second relevant date.(3)For the purposes of sub-paragraph (2) an agreement is entered into on the date on which the following conditions are met—(a)there is a contract in writing for the provision of the car,(b)the contract is unconditional or, if it is conditional, the conditions have been met, and(c)no terms remain to be agreed.CommencementE+W+S+N.I.28(1)The amendments made by this Part of this Schedule have effect in relation to new expenditure (subject to sub-paragraph (2)).E+W+S+N.I.(2)The repeal of section 79 of CAA 2001 and the amendments made by paragraphs 10 and 18 have effect in cases in which a person ceases to own a car or motor cycle if the expenditure incurred on the provision of the car or motor cycle is new expenditure.29(1)The repeal of sections 74 to 78 of CAA 2001 and the amendments made by paragraphs 15 and 17 have effect in relation to old expenditure, but only for chargeable periods beginning on or after the third relevant date.E+W+S+N.I.(2)The repeal of section 79 of CAA 2001 and the amendment made by paragraph 18(a) have effect in cases in which a person ceases to own a car or motor cycle if the expenditure incurred on the provision of the car or motor cycle is old expenditure, but only for chargeable periods beginning on or after the third relevant date.TransitionalsE+W+S+N.I.30(1)This paragraph applies where expenditure incurred by a person on the provision of a car or motor cycle includes both new expenditure and old expenditure.E+W+S+N.I.(2)The new expenditure and the old expenditure are to be treated as if they were incurred on the provision of separate (but identical) cars or motor cycles.(3)Any amount required to be brought into account in connection with a disposal event in respect of the car or motor cycle mentioned in sub-paragraph (1) is to be apportioned on a just and reasonable basis.31(1)This paragraph applies where—E+W+S+N.I.(a)old expenditure is required to be allocated to a single asset pool by section 74 of CAA 2001,(b)there is unrelieved expenditure in that pool at the end of a transitional chargeable period, and(c)the unrelieved expenditure is not required to be allocated to a single asset pool by any other provision of Part 2 of that Act.(2)The unrelieved expenditure must be carried forward to the main pool.(3)A “transitional chargeable period” is one that begins before the third relevant date and ends on or after the day before the third relevant date.32An order made under section 82(4)(d) of CAA 2001 (qualifying hire cars for disabled persons) before the day on which this Act is passed (and not revoked before that day) has effect as if it had also been made under section 268D(2)(d) of that Act (hire cars for disabled persons) (inserted by this Part of this Schedule).E+W+S+N.I.InterpretationE+W+S+N.I.33In this Part of this Schedule—E+W+S+N.I.(a)“car” and “motor cycle” have the meaning given in section 268A of CAA 2001 (inserted by paragraph 11), and(b)other expressions used in this Part of this Schedule and in Part 2 of CAA 2001 have the same meaning here as in that Part of that Act. Part 2 E+W+S+N.I.Restrictions on deductions for hire expensesIncome taxE+W+S+N.I.34ITTOIA 2005 is amended as follows.E+W+S+N.I.35In section 31(1)(b) (relationship between rules prohibiting and allowing deductions), omit “or motor cycle”.E+W+S+N.I.36(1)Section 48 (rules restricting deductions from profits: car or motor cycle hire) is amended as follows.E+W+S+N.I.(2)In subsection (1), for the words from “or motor cycle”, in the first place, to the end substitute “which is not— (a)a car that is first registered before 1 March 2001,
(d)a qualifying hire car.”
(3)In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”.(4)In subsection (4), for “multiplying it by the fraction in subsection (2)” substitute “ 15% ”.(5)In subsection (4A)(a), (b) and (c), omit “or motor cycle”.(6)Omit subsection (5).(7)In the heading, omit “or motor cycle”.37(1)Section 49 (car or motor cycle hire: supplementary) is amended as follows.E+W+S+N.I.(2)In subsection (1)—(a)omit “or motor cycle”,(b)omit “one”,(c)before paragraph (a) insert—“(za)a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988),”, and
(d)in paragraphs (a) and (b), insert at the beginning “a vehicle”.(3)After that subsection insert—“(1A)In section 48—
“a car that has low CO2 emissions” has the same meaning as in section 104AA of CAA 2001 (special rate expenditure: main rate car);
“electrically propelled” has the meaning given in section 268B of that Act.”
(4)In subsection (2)—(a)omit “or motor cycle” (in each place),(b)omit paragraph (c), and(c)insert at the end—“(d)is leased under a long-funding lease (within the meaning of section 70G of CAA 2001).”
(5)In subsection (6), omit “and section 48”.(6)In the heading, omit “or motor cycle”.38Omit section 50 (hiring cars with low carbon dioxide emissions).E+W+S+N.I.39After that section insert—E+W+S+N.I.“50AShort-term hiring in and long-term hiring out(1)Section 48 does not apply to expenses incurred by a person (“the taxpayer”) on the hiring of a car if condition A or B is met.
(a)the expenses are incurred in respect of the making available of the car to the taxpayer for a period (“the hire period”) of not more than 45 consecutive days, and
(b)if the car is made available to the taxpayer (whether by the same person or different persons) for one or more periods linked to the hire period, the hire period and the linked period or periods, taken together, consist of not more than 45 days.
(3)Condition B is that the expenses are incurred in respect of a period (“the sub-hire period”) throughout which the taxpayer makes the car available to another person (“the customer”) and—
(a)the sub-hire period consists of more than 45 consecutive days, or
(b)if the taxpayer makes the car available to the customer throughout one or more periods linked to the sub-hire period, the sub-hire period and the linked period or periods, taken together, consist of more than 45 days,
but see subsection (4).
(4)Condition B is not met if—
(a)the customer is an employee of the taxpayer or of a person connected with the taxpayer, or
(b)during all or part of the sub-hire period (or any period linked to the sub-hire period), the customer makes any car available to an employee of the taxpayer under arrangements with the taxpayer or with a person connected with the taxpayer.
(5)Neither condition A nor condition B is met if the car is hired under arrangements the purpose, or one of the main purposes, of which is—
(a)to disapply or reduce the effect of section 48, or
(b)other avoidance of tax.
(6)For the purposes of condition B the expenses incurred by the taxpayer on the hiring of the car must be apportioned between—
(a)the sub-hire period, and
(b)the remainder of the period during which the car is made available to the taxpayer,
according to the respective lengths of those periods.
(7)A period of consecutive days (“the main period”) is linked to—
(a)a period of consecutive days that ends not more than 14 days before the main period begins,
(b)a period of consecutive days that begins not more than 14 days after the main period ends, and
(c)a period of consecutive days linked to a period in paragraph (a) or (b).
(8)For the purposes of this section, where arrangements for the hiring of a car include arrangements for the provision of a replacement car in the event that the first car is not available, the first car and any replacement car are to be treated as if they were the same car.
(9)In this section (and section 50B) “arrangements” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions.
50BConnected persons: application of section 48(1)This section applies where connected persons incur expenses on the hiring of the same car for the same period and—
(a)section 48 would (but for this section) apply to the expenses of two or more of those persons, or
(b)section 48 and section 56 of CTA 2009 would (but for this section and section 58B of that Act) each apply to the expenses of at least one of those persons.
(2)This section only applies where one or more of the persons mentioned in subsection (1)(a) or (b) incurs the expenses under commercial arrangements (and such a person is referred to below as a “commercial lessee”).
(3)In relation to the expenses mentioned in subsection (1) to which section 48 would (but for this section) apply, section 48 only applies to the following—
(a)where there is one commercial lessee, any such expenses incurred by that lessee, and
(b)where there is more than one, any such expenses incurred by the first commercial lessee in the chain of arrangements for the hiring of the car for the period.
(a)references to expenses incurred by a commercial lessee include expenses incurred in that or any other capacity, and
(b)“commercial arrangements” means arrangements the terms of which are such as would reasonably have been expected if the parties to the arrangements had been dealing at arm's length.”
40In section 247(1) (other rules about what counts as post-cessation receipts), omit “or motor cycle”.E+W+S+N.I.41In section 272(2) (profits of a property business: application of trading income rules), in the entry in the Table relating to sections 48 to 50—E+W+S+N.I.(a)for “50” substitute “ 50B ”, and(b)omit “or motor cycle”.42In section 274(1)(b) (relationship between rules prohibiting and allowing deductions), omit “or motor cycle”.E+W+S+N.I.43In section 354(2) (other rules about what counts as post-cessation receipts), omit “or motor cycle”.E+W+S+N.I.44In Schedule 2 (transitionals and savings), omit paragraphs 16 and 17 (and the heading before them).E+W+S+N.I.Corporation taxE+W+S+N.I.45CTA 2009 is amended as follows.E+W+S+N.I.46In section 51(1)(b)(i) (relationship between rules prohibiting and allowing deductions), omit “or motor cycle”.E+W+S+N.I.47(1)Section 56 (rules restricting deductions from profits: car or motor cycle hire) is amended as follows.E+W+S+N.I.(2)In subsection (1), for the words from “or motor cycle”, in the first place, to the end substitute “which is not— (a)a car that is first registered before 1 March 2001,
(3)In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”.(4)In subsection (4), for “multiplying it by the fraction in subsection (2)” substitute “ 15% ”.(5)In subsection (5)(a), (b) and (c), omit “or motor cycle”.(6)Omit subsection (6).(7)In the heading, omit “or motor cycle”.48(1)Section 57 (car or motor cycle hire: supplementary) is amended as follows.E+W+S+N.I.(2)In subsection (1)—(a)omit “or motor cycle”,(b)omit “one”,(c)before paragraph (a) insert—“(za)a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988),”, and
(d)in paragraphs (a) and (b), insert at the beginning “a vehicle”.(3)After that subsection insert—“(1A)In section 56—
(5)In subsection (6), omit “and section 56”.(6)In the heading, omit “or motor cycle”.49Omit section 58 (hiring cars with low CO2 emissions before 1 April 2013).E+W+S+N.I.50After section 58 insert—E+W+S+N.I.“58AShort-term hiring in and long-term hiring out(1)Section 56 does not apply to expenses incurred by a company (“the taxpayer”) on the hiring of a car if condition A or B is met.
(a)the customer is an employee or officer of the taxpayer or of a person connected with the taxpayer, or
(b)during all or part of the sub-hire period (or any period linked to the sub-hire period), the customer makes any car available to an employee or officer of the taxpayer under arrangements with the taxpayer or with a person connected with the taxpayer.
(a)to disapply or reduce the effect of section 56, or
(9)In this section (and section 58B) “arrangements” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions.
58BConnected persons: application of section 56(1)This section applies where connected persons incur expenses on the hiring of the same car for the same period and—
(a)section 56 would (but for this section) apply to the expenses of two or more of those persons, or
(b)section 56 and section 48 of ITTOIA 2005 would (but for this section and section 50B of that Act) each apply to the expenses of at least one of those persons.
(3)In relation to the expenses mentioned in subsection (1) to which section 56 would (but for this section) apply, section 56 only applies to the following—
51In section 191(1) (other rules about what counts as post-cessation receipts), omit “or motor cycle”.E+W+S+N.I.52In section 210(2) (profits of a property business: application of trading income rules), in the entry in the Table relating to sections 56 to 58—E+W+S+N.I.(a)for “58” substitute “ 58B ”, and(b)omit “or motor cycle”.53In section 214(1)(b)(i) (relationship between rules prohibiting and allowing deductions), omit “or motor cycle”.E+W+S+N.I.54In section 283(2) (other rules about what counts as post-cessation receipts), omit “or motor cycle”.E+W+S+N.I.55In section 865(3)(a) (debits for expenditure not generally deductible for tax purposes), omit “or motor cycle”.E+W+S+N.I.56In section 1231(3) (absence of accounts), omit “or motor cycle”.E+W+S+N.I.57(1)Section 1251 (car or motor cycle hire: companies with investment business) is amended as follows.E+W+S+N.I.(2)In subsection (1), for the words from “or motor cycle”, in the first place, to the end substitute “which is not— (a)a car that is first registered before 1 March 2001,
(3)In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”.(4)In subsection (4)(b), for “multiply that amount by the fraction set out in subsection (2) above” substitute “ reduce that amount by 15% ”.(5)In subsection (5)(a), (b) and (c), omit “or motor cycle”.(6)Omit subsection (6).(7)In subsection (7)—(a)omit “or motor cycle”, and(b)for “58 (hiring cars with low CO2 emissions before 1 April 2013)” substitute “ 58A (short-term hiring in and long-term hiring out) ”.(8)After that subsection insert—“(8)For the purposes of section 58B of this Act and section 50B of ITTOIA 2005 (connected persons: application of restrictions), this section is to be treated as if it were part of section 56 of this Act.”
(9)In the heading, omit “or motor cycle”.58In Schedule 2 (transitionals and savings), omit paragraphs 16 and 17 (and the heading before them).E+W+S+N.I.59ICTA is amended as follows.E+W+S+N.I.60(1)Section 76ZN (car or motor cycle hire: expenses of insurance companies) is amended as follows.E+W+S+N.I.(2)In subsection (1)—(a)in paragraph (a), omit “or motor cycle”, and(b)for paragraphs (b) and (c) substitute—“(b)the car is not—
(i)a car that is first registered before 1 March 2001,
(ii)a car that has low CO2 emissions (as defined in section 104AA of the Capital Allowances Act),
(iii)a car that is electrically propelled (as defined in section 268B of that Act), or
(iv)a qualifying hire car.”
(3)After that subsection insert—“(1A)Subsection (2) does not apply if condition A or condition B in section 58A of CTA 2009 (short-term hiring in and long-term hiring out) is met.”
(4)In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”.(5)In subsection (5), for the words from “multiplying” to the end substitute “ 15% ”.(6)In subsection (6)(a), (b) and (c), omit “or motor cycle”.(7)Omit subsection (7).(8)In subsection (8), omit “or motor cycle” (in both places).(9)After that subsection insert—“(9)For the purposes of section 50B of ITTOIA 2005 and section 58B of CTA 2009 (connected persons: application of restrictions), this section is to be treated as if it were part of section 56 of CTA 2009.”
61Omit section 76ZO (hiring cars (but not motor cycles) with low CO2 emissions before 1 April 2013).E+W+S+N.I.62(1)Section 578A (rules restricting deductions: car or motor cycle hire) is amended as follows.E+W+S+N.I.(2)In subsection (2), for paragraphs (a) and (b) substitute “which is not— (a)a car that is first registered before 1 March 2001,
(b)a car that has low CO2 emissions (as defined in section 104AA of the Capital Allowances Act),
(c)a car that is electrically propelled (as defined in section 268B of that Act), or
(3)Omit subsections (2A) and (2B).(4)After subsection (2B) insert—“(2C)This section does not apply to the hiring of a car where condition A or condition B in section 58A of CTA 2009 (short-term hiring in and long-term hiring out) is met.”
(5)In subsection (3), for the words from “multiplying” to the end substitute “ 15% ”.(6)In subsection (4), for “multiplying it by the fraction in subsection (3) above” substitute “ 15% ”.(7)After that subsection insert—“(5)For the purposes of section 50B of ITTOIA 2005 (connected persons: application of restrictions), this section is to be treated as if it were part of section 48 of that Act.”
63(1)Section 578B (expenditure on car or motor cycle hire: supplementary) is amended as follows.E+W+S+N.I.(2)In subsection (1)—(a)omit “one”,(b)before paragraph (a) insert—“(za)a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988),”,
(c)in paragraphs (a) and (b), insert at the beginning “a vehicle”, and(d)omit the words after paragraph (b).(3)In subsection (2)—(a)omit paragraph (b), and(b)insert at the end—“(c)it is leased under a long-funding lease (within the meaning of section 70G of the Capital Allowances Act).”
(4)In subsection (3), omit “section 578A and”.(5)Omit subsection (4).Consequential repealsE+W+S+N.I.64In consequence of the amendments made by this Part of this Schedule, omit—E+W+S+N.I.(a)in FA 2008, section 77(4)(b), and(b)in CTA 2009, in Schedule 1, paragraph 45.CommencementE+W+S+N.I.65For the purposes of this Part of this Schedule—E+W+S+N.I.(a)the first relevant date is—(i)for corporation tax purposes, 1 April 2009, and(ii)for income tax purposes, 6 April 2009, and(b)the second relevant date is—(i)for corporation tax purposes, 1 April 2010, and(ii)for income tax purposes, 6 April 2010, and66(1)The amendments made by this Part of this Schedule have effect in relation to deductions for expenses incurred on the hiring of a car or motor cycle under an agreement under which the hire period begins on or after the first relevant date (but see paragraph 67).E+W+S+N.I.(2)For the purposes of this paragraph and paragraph 67, the hire period, in relation to an agreement, begins on the first day on which the car or motor cycle is required to be made available for use under the agreement.Election for new regime not to apply in certain casesE+W+S+N.I.67(1)This paragraph applies where—E+W+S+N.I.(a)a person incurs expenses on the hiring of a car or motor cycle under an agreement entered into on or before 8 December 2008, and(b)the hire period begins before the second relevant date.(2)If the person makes an election under this paragraph, none of the amendments made by this Part of this Schedule has effect in relation to any deduction for expenses incurred by the person on the hiring of the car or motor cycle under the agreement.(3)The election must be made by notice given to an officer of Revenue and Customs—(a)for income tax purposes, on or before the normal time limit for amending a tax return for the tax year in which the relevant chargeable period ends, and(b)for corporation tax purposes, no later than 2 years after the end of the relevant chargeable period.(4)“The relevant chargeable period” means the first chargeable period (as defined in section 6 of CAA 2001) in which any expenditure by the person on the provision of the car or motor cycle under the agreement was incurred.(5)The election is irrevocable.(6)All such assessments and adjustments of assessments are to be made as are necessary to give effect to the election.(7)For the purpose of this paragraph, an agreement is entered into on the first date on which the following conditions are met—(a)there is a contract in writing for the use of the car or motor cycle by the person,(b)the contract is unconditional or, if it is conditional, the conditions have been met, and(c)no terms remain to be agreed.SavingE+W+S+N.I.68The repeal of section 82 of CAA 2001 (meaning of “qualifying hire car”) by Part 1 of this Schedule does not affect the continued operation of the following provisions until they are repealed by this Part of this Schedule—E+W+S+N.I.(a)section 578B(2)(b) of ICTA,(b)section 49(2)(c) of ITTOIA 2005, and(c)section 57(2)(c) of CTA 2009.Previous: ScheduleNext: ScheduleBack to topOptions/HelpPrint OptionsPrint The Whole ActPDF The Whole ActWeb page The Whole ActPrint This Schedule onlyPDF This Schedule onlyWeb page This Schedule onlyYou have chosen to open The Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. 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