2021 No. 120
The Capital Allowances Act 2001 (Car Emissions) (Extension of First-year Allowances) (Amendment) Order 2021
Made
Laid before the House of Commons
Coming into force
The Treasury make this Order in exercise of the powers conferred by sections 45D(1A) and (7), 45DA(1A), 45E(1A), 104AA(5) and (6) of the Capital Allowances Act 20011.
Citation, commencement, effect and interpretation1
1
This Order may be cited as the Capital Allowances Act 2001 (Car Emissions) (Extension of First-year Allowances) (Amendment) Order 2021 and comes into force on 1st April 2021.
2
The amendment made by—
a
article 3(b) has effect in relation to expenditure incurred on or after 1st April 2021,
b
article 6 has effect in relation to expenditure incurred on or after the relevant date.
4
In this Order “the relevant date” means—
a
in the case of income tax, 6th April 2021, and
b
in the case of corporation tax, 1st April 2021.
Amendment of the Capital Allowances Act 2001
2
3
In section 45D (expenditure on cars with low carbon dioxide emissions)—
a
in subsection (1)(a)2 for “2021” substitute “2025”, and
b
in subsection (4)3 for “50” substitute “0”.
4
In section 45DA(1)(a) (expenditure on zero-emission goods vehicles)4 for “11 years” substitute “15 years”.
5
In section 45E(1)(a) (expenditure on plant or machinery for gas refuelling station)5 for “2021” substitute “2025”.
6
In section 104AA(4) (meaning of “main rate car”)6 for “110” substitute “50”.
Savings7
Section 104AA(4) of the Capital Allowances Act 2001 continues to have effect as if it had not been amended by article 6 for the purposes of section 49(1A) (car hire: supplementary) of the Income Tax (Trading and Other Income) Act 20057 and section 57(1A) (car hire: supplementary) of the Corporation Tax Act 20098, in relation to expenditure incurred in the hiring of a car—
a
for a period of hire which begins before the relevant date, and
b
under a contract entered into before that date.
(This note is not part of the Order)