Finance Act 2009

Section 53

SCHEDULE 28 U.K. Taxable benefits: cars

Introduction U.K.

1 U.K. Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars) is amended as follows.

Abolition of “price cap” U.K.

2 (1) Section 121(1) (method of calculating cash equivalent of benefit of car) is amended as follows. U.K.

(2) In step 3, insert at the end— “ The resulting amount is the interim sum. ”

(3) Omit step 4 (interim sum to be £80,000 if step 3 amount exceeds £80,000).

3 U.K. In section 145(5) (modifications of provisions where car temporarily replaced), for “step 4” substitute “ step 3 ”.

4 U.K. In section 147(1) and (2) (classic cars), for “amount carried forward from” substitute “ interim sum calculated under ”.

5 U.K. In section 170(1) (Treasury orders increasing various amounts), omit paragraph (a) (amount in step 4 of section 121(1)).

Cars with CO₂ emissions figures: the appropriate percentage U.K.

6 U.K. In section 139(4) (car with a CO₂ emissions figure: the appropriate percentage), for the table substitute—

“Table

Tax year	Lower threshold (in g/km)
2009-10	135
2010-11	130
2011-12 and subsequent tax years	125”.

Electrically propelled cars: the appropriate percentage U.K.

7 U.K. In section 140(3)(a) (appropriate percentage for electrically propelled cars), for “15%” substitute “ 9% ”.

8 U.K. In section 142 (special provision for cars registered before 1998)—

(a) in subsection (3) (cars without internal combustion engine with reciprocating pistons), for the words after “year is” substitute “ 32% ”, and

(b) omit subsection (4) (definition of electrically propelled car).

Consequential repeal U.K.

9 U.K. In consequence of the amendment made by paragraph 6, in FA 2008, omit section 47(1).

Commencement U.K.

10 (1) The amendments made by paragraphs 6 and 9 have effect for the tax year 2009-10 and subsequent tax years. U.K.

(2) The other amendments made by this Schedule have effect for the tax year 2011-12 and subsequent tax years.