45D Expenditure on cars with low carbon dioxide emissions

1

Expenditure is first-year qualifying expenditure if—

a

it is incurred in the period beginning with 17th April 2002 and ending with 31st March 2008,

b

it is expenditure on a car which is first registered on or after 17th April 2002 and which is unused and not second-hand,

c

the car—

i

is an electrically-propelled car, or

ii

is a car with low CO₂ emissions, and

d

the expenditure is not excluded by section 46 (general exclusions).

2

For the purposes of this section a car with low CO₂ emissions is a car which satisfies the conditions in subsections (3) and (4).

3

The first condition is that, when the car is first registered, it is so registered on the basis of an EC certificate of conformity, or a UK approval certificate, that specifies—

a

in the case of a car other than a bi-fuel car, a CO₂ emissions figure in terms of grams per kilometre driven, or

b

in the case of a bi-fuel car, separate CO₂ emissions figures in terms of grams per kilometre driven for different fuels.

4

The second condition is that the applicable CO₂ emissions figure in the case of the car does not exceed 120 grams per kilometre driven.

5

For the purposes of subsection (4) the applicable CO₂ emissions figure in the case of a car other than a bi-fuel car is—

a

where the EC certificate of conformity or UK approval certificate specifies only one CO₂ emissions figure, that figure, and

b

where the certificate specifies more than one CO₂ emissions figure, the figure specified as the CO₂ emissions (combined) figure.

6

For the purposes of subsection (4) the applicable CO₂ emissions figure in the case of a bi-fuel car is—

a

where the EC certificate of conformity or UK approval certificate specifies more than one CO₂ emissions figure in relation to each fuel, the lowest CO₂ emissions (combined) figure specified, and

b

in any other case, the lowest CO₂ figure specified by the certificate.

7

The Treasury may by order amend the amount from time to time specified in subsection (4).

8

In this section any reference to a car—

a

includes a reference to a mechanically propelled road vehicle of a type commonly used as a hackney carriage, but

b

does not include a reference to a motorcycle.

9

For the purposes of this section, a car is an electrically-propelled car only if—

a

it is propelled solely by electrical power, and

b

that power is derived from—

i

a source external to the vehicle, or

ii

an electrical storage battery which is not connected to any source of power when the vehicle is in motion.

10

In this section—

• “bi-fuel car” means a car which is capable of being propelled by—

  1. a

     petrol and road fuel gas, or

  2. b

     diesel and road fuel gas;

• “car” has the meaning given by section 81 (extended meaning of “car");

• “diesel” means any diesel fuel within the definition in Article 2 of Directive 98/70/EC of the European Parliament and of the Council;

• “EC certificate of conformity” means a certificate of conformity issued by a manufacturer under any provision of the law of a member State implementing Article 6 of Council Directive 70/156/EEC, as amended;

• “petrol” has the meaning given by Article 2 of Directive 98/70/ EC of the European Parliament and of the Council;

• “road fuel gas” has the same meaning as in section 168AB of ICTA;

• “UK approval certificate” means a certificate issued under—

  1. a

     section 58(1) or (4) of the Road Traffic Act 1988, or

  2. b

     Article 31A(4) or (5) of the Road Traffic (Northern Ireland) Order 1981.