Part 3Capital allowances

Plant and machinery: first-year allowances

77Cars with low carbon dioxide emissions

1

Section 45D of CAA 2001 (expenditure on cars with low carbon dioxide emissions) is amended as follows.

2

In subsection (1)(a), for “2008” substitute “ 2013 ”.

3

In subsection (4), for “120” substitute “ 110 ”.

4

In consequence of the amendment made by subsection (2)—

a

in section 60(2)(b) of FA 2002 (period for which section 578A(2A) and (2B) of ICTA have effect), for “2008” (in both places) substitute “ 2013 ”, and

b

in section 50(3) of ITTOIA 2005 (cases in which expenses incurred on hiring car with low carbon dioxide emissions are not excluded from section 48 of that Act), for “2008” substitute “ 2013 ”.

5

The amendment made by subsection (3) has effect in relation to expenditure incurred on or after 1 April 2008.

6

But in relation to expenditure incurred on the hiring of a car—

a

for a period of hire which begins on or before 31 March 2008, and

b

under a contract entered into on or before 31 March 2008,

section 578A of ICTA and section 50 of ITTOIA 2005 apply on and after 1 April 2008 as if the amendment made by subsection (3) did not have effect.