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(1)This section applies if a person who is carrying on a qualifying activity consisting of an employment or office (“the employee”)—
(a)incurs capital expenditure on the provision of a mechanically propelled road vehicle or a cycle, and
(b)owns the vehicle or cycle as a result of incurring that expenditure.
(2)References in this Part to qualifying expenditure include the employee’s expenditure on the provision of the vehicle or cycle if it is provided partly for use in—
(a)the performance of the duties of the employment or office, or
(b)the kind of travelling in respect of which expenses would be deductible as qualifying travelling expenses under section 198 of ICTA.
(3)The amount of any balancing allowance to which the employee is entitled for the final chargeable period is—
where—
AQE is the available qualifying expenditure in the pool for that period,
TDR is the total of any disposal receipts to be brought into account in that pool for that period,
A is the number of chargeable periods in the case of which the employee—
has carried on the qualifying activity and owned the vehicle or cycle, and
has claimed an allowance falling to be made to him by reference to expenditure incurred on the provision of the vehicle or cycle, and
B is the number of chargeable periods in the case of which the employee—
has carried on the qualifying activity and owned the vehicle or cycle, and
has been entitled to an allowance by reference to expenditure incurred on the provision of the vehicle or cycle.
(4)In this section “cycle” has the meaning given by section 192(1) of the Road Traffic Act 1988 (c. 52).