SCHEDULES

SCHEDULE 11Tax relief for business expenditure on cars and motor cycles

Part 1Capital allowances

Plant and machinery allowances for cars and motor cycles

7

1

Section 104A (special rate expenditure) is amended as follows.

2

In subsection (1)—

a

in paragraph (a), after “the” insert “ first ”,

b

omit “and” at the end of paragraph (c), and

c

insert at the end

, and

e

expenditure incurred on or after the second relevant date on the provision of a car that is not a main rate car.

3

In subsection (2), after “The” insert “ first ”.

4

After that subsection insert—

3

The second relevant date is—

a

for corporation tax purposes, 1 April 2009, and

b

for income tax purposes, 6 April 2009.

4

In this section—

  • “car” has the meaning given in section 268A;

  • “main rate car” has the meaning given in section 104AA.