SCHEDULES

SCHEDULE 11Tax relief for business expenditure on cars and motor cycles

Part 1Capital allowances

Commencement and transitionals: introduction

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For the purposes of this Part of this Schedule—

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.

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1

For the purposes of this Part of this Schedule “new expenditure” means—

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.