Part II Income Tax, Corporation Tax and Capital Gains Tax

Chapter II Capital allowances

71 Expensive motor cars.

1

The M1Capital Allowances Act 1990 shall be amended as follows.

2

In section 34 (writing-down allowances etc.) in subsection (1) for “£8,000" there shall be substituted “ £12,000 ”.

3

In subsection (3) of that section for “£2,000" in each place where it occurs there shall be substituted “ £3,000 ”.

4

In section 35 (contributions to expenditure and hiring of cars) in subsection (1) for “£8,000" and “£2,000" there shall be substituted “ £12,000 ” and “ £3,000 ” respectively.

5

In subsection (2) of that section for “£8,000" in both places where it occurs there shall be substituted “ £12,000 ”.

6

Subsections (2) and (3) above shall apply in relation to expenditure incurred or treated as incurred after 10th March 1992 unless the expenditure is incurred under a contract entered into on or before 10th March 1992.

7

Subsection (4) above shall apply in relation to expenditure incurred after 10th March 1992 unless the expenditure is incurred under a contract entered into on or before 10th March 1992.

8

Subsection (5) above shall apply in relation to expenditure on the hiring of a motor car under a contract entered into after 10th March 1992.