Finance Act 2017

29 (1) Section 144 (deduction for payments for private use) is amended as follows. U.K.

(2) In subsection (1), for “calculated under step 7 of section 121(1)” substitute “ (see subsection (1A)) ”.

(3) After subsection (1) insert

“(1A) In this section “the provisional sum” means the provisional sum calculated under—

(a) step 7 of section 121(1) (method of calculating the cash equivalent of the benefit of a car), or

(b) step 2 of section 121A(1) (optional remuneration arrangements: method of calculating relevant amount).”

(4) In subsection (2), for the words from “so that” to the end substitute “so that—

(a) in a case within subsection (1A)(a), the cash equivalent of the benefit of the car for the year is nil, or

(b) in a case within subsection (1A)(b), the relevant amount for the purposes of section 120A is nil.”

(5) In subsection (3)—

(a) for “In any other case” substitute “ Where subsection (2) does not apply, ” and

(b) for the words from “give” to the end substitute “give—

(a) in a case within subsection (1A)(a), the cash equivalent of the benefit of the car for the year, or

(b) in a case within subsection (1A)(b), the relevant amount for the purposes of section 120A.”