SCHEDULES
SCHEDULE 28Taxable benefits: cars
1Introduction
Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars) is amended as follows.
Abolition of “price cap”
2
1
Section 121(1) (method of calculating cash equivalent of benefit of car) is amended as follows.
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
In section 145(5) (modifications of provisions where car temporarily replaced), for “step 4” substitute “step 3”.
4
In section 147(1) and (2) (classic cars), for “amount carried forward from” substitute “interim sum calculated under”.
5
In section 170(1) (Treasury orders increasing various amounts), omit paragraph (a) (amount in step 4 of section 121(1)).
6Cars with CO2 emissions figures: the appropriate percentage
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
7
In section 140(3)(a) (appropriate percentage for electrically propelled cars), for “15%” substitute “9%”.
8
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).
9Consequential repeal
In consequence of the amendment made by paragraph 6, in FA 2008, omit section 47(1).
10Commencement
1
The amendments made by paragraphs 6 and 9 have effect for the tax year 2009-10 and subsequent tax years.
2
The other amendments made by this Schedule have effect for the tax year 2011-12 and subsequent tax years.