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.

F1(2)

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F2(3)

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(4)

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

F3(a)

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F4(b)

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(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,

F5section 50 of ITTOIA 2005 applies on and after 1 April 2008 as if the amendment made by subsection (3) did not have effect.