The Income Tax (Cash Equivalents of Car Benefits) Order 1987

Made5th November 1987

Laid before the House of Commons17th November 1987

Coming into force6th April 1988

The Treasury, in exercise of the powers conferred on them by section 64(4) of the Finance Act 19761, hereby make the following Order:

1

This Order may be cited as the Income Tax (Cash Equivalents of Car Benefits) Order 1987 and shall come into force on 6th April 1988.

2

In Part I of Schedule 7 to the Finance Act 1976 (Tables of flat rate cash equivalents) for Tables A, B and C there shall be substituted the following Tables—

Table ACARS WITH ORIGINAL MARKET VALUE UP TO £19,250 AND HAVING A CYLINDER CAPACITY

Cylinder capacity of car in cubic centimetres
Age of car at end of relevant year of assessment
Under 4 years	4 years or more
1,400 or less	£580	£380
More than 1,400, but not more than 2,000	£770	£520
More than 2,000	£1,210	£800

Table BCARS WITH ORIGINAL MARKET VALUE UP TO £19,250 AND NOT HAVING A CYLINDER CAPACITY

Original market value of car
Age of car at end of relevant year of assessment
Under 4 years	4 years or more
Less than £6,000	£580	£380
£6,000 or more, but less than £8,500	£770	£520
£8,500 or more, but not more than £19,250	£1,210	£800

Table CCARS WITH ORIGINAL MARKET VALUE MORE THAN £19,250

Original market value of car
Age of car at end of relevant year of assessment
Under 4 years	4 years or more
More than £19,250, but not more than £29,000	£1,595	£1,070
More than £29,000	£2,530	£1,685

Peter LloydMark Lennox-BoydTwo of the Lords Commissioners of Her Majesty’s Treasury5th November 1987

(This note is not part of the Order)

Section 64 of the Finance Act 1976 provides that in certain circumstances a person employed in director’s or higher-paid employment is chargeable to income tax in respect of the benefit of a car made available for private use by reason of his employment. The cash equivalent of such a benefit is, subject to the provisions of the section, to be ascertained from Tables A, B and C in Part I of Schedule 7 to that Act.

This Order, with effect from 6th April 1988, substitutes such Tables for those substituted by S.I.1986/703.