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Income Tax (Earnings and Pensions) Act 2003

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Changes over time for: Cross Heading: Cars: special cases

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Version Superseded: 21/07/2009

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Status:

Point in time view as at 03/08/2005.

Changes to legislation:

Income Tax (Earnings and Pensions) Act 2003, Cross Heading: Cars: special cases is up to date with all changes known to be in force on or before 06 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Cars: special casesU.K.

146Cars that run on road fuel gasU.K.

(1)This section applies if the car—

(a)has been manufactured so as to be capable of running on road fuel gas, and

(b)is not a car to which section 137 (different CO2 emissions figure for bi-fuel cars) applies.

(2)The price of the car found under step 1 of section 121(1) is to be reduced by so much of that price as it is reasonable to attribute to the car being manufactured in such a way as to be capable of running on road fuel gas rather than in such a way as to be capable of running only on petrol.

147Classic cars: 15 years of age or moreU.K.

(1)This section applies in calculating the cash equivalent of the benefit of a car for a tax year if—

(a)the age of the car at the end of the year is 15 years or more,

(b)the market value of the car for the year is £15,000 or more, and

(c)that market value exceeds the amount carried forward from step 3 of section 121(1).

(2)For the amount carried forward from step 3 substitute the market value of the car for the tax year in question less any deductions under subsection (6).

(3)The market value of a car for a tax year is the price which the car might reasonably have been expected to fetch on a sale in the open market on—

(a)the last day of that year, or

(b)the last day in that year on which the car is available to the employee if that is earlier.

(4)It is assumed that any qualifying accessories available with the car on that day are included in the sale.

(5)Subsection (6) applies if the employee contributes a capital sum to expenditure on the provision of—

(a)the car, or

(b)any qualifying accessory which is taken into account in determining the market value of the car.

(6)A deduction is to be made from the market value of the car—

(a)for the tax year in which the contribution is made, and

(b)for all subsequent years in which the employee is chargeable to tax in respect of the car by virtue of section 120.

(7)The amount of the deduction allowed in any tax year is the lesser of—

(a)the total of the capital sums contributed by the employee in that year and any earlier years to expenditure on the provision of—

(i)the car, or

(ii)any qualifying accessory which is taken into account in determining the market value of the car for the tax year in question, and

(b)£5,000.

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