Finance Act 2017

Benefits in kind: amount treated as earnings

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

(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.”