http://www.legislation.gov.uk/uksi/2016/984The Capital Allowances Act 2001 (Cars Emissions) Order 2016enCORPORATION TAXINCOME TAXStatute Law Database2025-10-07Expert Participation2017-08-03 This Order amends sections 45D and 104AA of the Capital Allowances Act 2001 (c.2). These sections set out the conditions to qualify for 100% first-year allowances (section 45D) and main rate allowances (section 104AA) on expenditure in respect of cars with low carbon dioxide emissions. 2016 No. 984Corporation TaxIncome TaxThe Capital Allowances Act 2001 (Cars Emissions) Order 2016Made10th October 2016Laid before the House of Commons11th October 2016Coming into force1st November 2016The Treasury make the following Order in exercise of the powers conferred by sections 45D(1A) and (7) and 104AA(5) of the Capital Allowances Act 2001. Citation and commencement1This Order may be cited as the Capital Allowances Act 2001 (Cars Emissions) Order 2016 and comes into force on 1st November 2016.<P1 DocumentURI="http://www.legislation.gov.uk/uksi/2016/984/article/2" IdURI="http://www.legislation.gov.uk/id/uksi/2016/984/article/2" id="article-2"><Pnumber><CommentaryRef Ref="key-3d5f70703b62167ca3c08e82a3963f07"/>2</Pnumber><P1para><P2 DocumentURI="http://www.legislation.gov.uk/uksi/2016/984/article/2/1" IdURI="http://www.legislation.gov.uk/id/uksi/2016/984/article/2/1" id="article-2-1"><Pnumber><Addition ChangeId="key-01ed5da45013d20e497aef82da8b2807-1759484235791" CommentaryRef="key-01ed5da45013d20e497aef82da8b2807">1</Addition></Pnumber><P2para><Text>The amendments made by article 4(b) and article 5 have effect in relation to expenditure incurred on or after 1st April 2018.</Text></P2para></P2><P2 DocumentURI="http://www.legislation.gov.uk/uksi/2016/984/article/2/2" IdURI="http://www.legislation.gov.uk/id/uksi/2016/984/article/2/2" id="article-2-2"><Pnumber><Addition ChangeId="key-a5c2ead1182525aba884d0fd2abf1a68-1759484495295" CommentaryRef="key-a5c2ead1182525aba884d0fd2abf1a68">2</Addition></Pnumber><P2para><Text><Addition ChangeId="key-a5c2ead1182525aba884d0fd2abf1a68-1759484495295" CommentaryRef="key-a5c2ead1182525aba884d0fd2abf1a68">This article is subject to article 7 (savings).</Addition></Text></P2para></P2></P1para></P1></P1group><P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="2016-11-01"><Title>Amendment of the Capital Allowances Act 20013The Capital Allowances Act 2001 is amended as follows.<P1 DocumentURI="http://www.legislation.gov.uk/uksi/2016/984/article/4" IdURI="http://www.legislation.gov.uk/id/uksi/2016/984/article/4" id="article-4"><Pnumber><CommentaryRef Ref="key-b676b16aa763013658f6e9e386605e1a"/>4</Pnumber><P1para><Text>In section 45D—</Text><P3 DocumentURI="http://www.legislation.gov.uk/uksi/2016/984/article/4/a" IdURI="http://www.legislation.gov.uk/id/uksi/2016/984/article/4/a" id="article-4-a"><Pnumber>a</Pnumber><P3para><Text>in subsection (1)(a)<FootnoteRef Ref="f00002"/> for “2018” substitute “2021”; and</Text></P3para></P3><P3 DocumentURI="http://www.legislation.gov.uk/uksi/2016/984/article/4/b" IdURI="http://www.legislation.gov.uk/id/uksi/2016/984/article/4/b" id="article-4-b"><Pnumber>b</Pnumber><P3para><Text>in subsection (4)<FootnoteRef Ref="f00003"/> for “75” substitute “50”.</Text></P3para></P3></P1para></P1></P1group><P1group RestrictStartDate="2016-11-01"><Title/><P1 DocumentURI="http://www.legislation.gov.uk/uksi/2016/984/article/5" IdURI="http://www.legislation.gov.uk/id/uksi/2016/984/article/5" id="article-5"><Pnumber><CommentaryRef Ref="key-ace7ece7c0001eb9c9f5f3de91a992eb"/>5</Pnumber><P1para><Text>In section 104AA(4)<FootnoteRef Ref="f00004"/> for “130” substitute “110”.</Text></P1para></P1></P1group><P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="2016-11-01"><Title>Revocation6Article 4(a) of the Capital Allowances Act 2001 (Extension of first-year allowances) (Amendment) Order 2015 is revoked.<Addition ChangeId="key-ea440df808057cc85fa63dbfb5ea505c-1759483286800" CommentaryRef="key-ea440df808057cc85fa63dbfb5ea505c">Savings</Addition>71In relation to expenditure incurred on the hiring of a car—afor a period of hire which begins before the relevant date, andbunder a contract entered into before that date,section 49(1A) (car hire: supplementary) of the Income Tax (Trading and Other Income) Act 2005 and section 57(1A) (car hire: supplementary) of the Corporation Tax Act 2009 apply as if the amendment made by article 5 did not have effect.2“The relevant date” means—ain the case of income tax, 6th April 2018, andbin the case of corporation tax, 1st April 2018.Stephen BarclayDavid EvennettTwo of the Lords Commissioners for Her Majesty’s Treasury10th October 2016 EXPLANATORY NOTE(This note is not part of the Order)

This Order amends sections 45D and 104AA of the Capital Allowances Act 2001 (c.2). These sections set out the conditions to qualify for 100% first-year allowances (section 45D) and main rate allowances (section 104AA) on expenditure in respect of cars with low carbon dioxide emissions.

Article 4 extends the first-year allowance for cars with low carbon dioxide emissions for a further three year period ending on 31st March 2021. It also reduces the qualifying emissions threshold for the first-year allowance from 75 grams to 50 grams per kilometre driven, in relation to expenditure incurred on or after 1st April 2018.

Article 5 reduces the qualifying emissions threshold for the main rate allowance from 130 grams to 110 grams per kilometre driven, in relation to expenditure incurred on or after 1st April 2018.

This Order revokes article 4(a) of S.I. 2015/60, which previously amended section 45D(1)(a) of the Capital Allowances Act 2001.

A Tax Information and Impact Note covering this instrument will be published on the website athttps://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

 2001 c.2; section 45D was inserted by section 59 of, and paragraph 3 of Schedule 19 to, the Finance Act 2002 (c.23); section 45D(1A) was inserted by section 64(2) of the Finance Act 2014 (c.26); section 104AA was inserted by paragraph 8 of Schedule 11 to the Finance Act 2009 (c.10). Section 45D(1)(a) was amended by S.I. 2015/60. Section 45D(4) was amended by paragraph 14 of Schedule 11 to the Finance Act 2009 (c.10) and S.I. 2015/60; there are other amendments to section 45D not relevant to this Order. Section 104AA(4) was amended by section 68(3) of the Finance Act 2013 (c.29). S.I. 2015/60. Art. 1 in force at 1.11.2016, see art. 1Art. 2 in force at 1.11.2016, see art. 1Art. 3 in force at 1.11.2016, see art. 1Art. 4 in force at 1.11.2016, see art. 1Art. 5 in force at 1.11.2016, see art. 1Art. 6 in force at 1.11.2016, see art. 1Art. 7 inserted (3.8.2017) by The Capital Allowances Act 2001 (Cars Emissions) (Amendment) Order 2017 (S.I. 2017/740), arts. 1(1), 2(4)Art. 2 renumbered as art. 2(1) (3.8.2017) by The Capital Allowances Act 2001 (Cars Emissions) (Amendment) Order 2017 (S.I. 2017/740), arts. 1(1), 2(2)Art. 2(2) inserted (3.8.2017) by The Capital Allowances Act 2001 (Cars Emissions) (Amendment) Order 2017 (S.I. 2017/740), arts. 1(1), 2(3)