Reduction of cash equivalent where car is shared: income tax3
1
The Income Tax (Earnings and Pensions) Act 20037 is amended as follows.
2
In section 1218 (method of calculating the cash equivalent of the benefit of a car) for subsection (3) substitute—
3
Where the car is shared the cash equivalent is calculated under this section in accordance with section 148.
3
In section 148 (reduction of cash equivalent where car is shared)—
a
in subsection (2) omit paragraph (b) and the “and” before it,
b
after that subsection, insert—
2A
The provisional sum calculated under step 7 in section 121(1) is to be reduced on a just and reasonable basis before making any deduction under step 8.
c
in subsection (3) for “(2)(b)” substitute “(2A)”.