Finance Act 2008

77 Cars 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.