Part 3Capital allowances
Plant and machinery: first-year allowances
77Cars with low carbon dioxide emissions
1
Section 45D of CAA 2001 (expenditure on cars with low carbon dioxide emissions) is amended as follows.
2
In subsection (1)(a), for “2008” substitute “
2013
”
.
3
In subsection (4), for “120” substitute “
110
”
.
4
In consequence of the amendment made by subsection (2)—
a
in section 60(2)(b) of FA 2002 (period for which section 578A(2A) and (2B) of ICTA have effect), for “2008”
(in both places) substitute “
2013
”
, and
b
in section 50(3) of ITTOIA 2005 (cases in which expenses incurred on hiring car with low carbon dioxide emissions are not excluded from section 48 of that Act), for “2008” substitute “
2013
”
.
5
The amendment made by subsection (3) has effect in relation to expenditure incurred on or after 1 April 2008.
6
But in relation to expenditure incurred on the hiring of a car—
a
for a period of hire which begins on or before 31 March 2008, and
b
under a contract entered into on or before 31 March 2008,
section 578A of ICTA and section 50 of ITTOIA 2005 apply on and after 1 April 2008 as if the amendment made by subsection (3) did not have effect.