SI 2017/740 - The Capital Allowances Act 2001 (Cars Emissions) (Amendment) Order 2017

Released 13 July 2017

SI 2017/740 - The Capital Allowances Act 2001 (Cars Emissions) (Amendment) Order 2017 amends the Capital Allowances Act 2001 (Cars Emissions) Order 2016 (SI 2016/984) to specify when a change in the capital allowances main rate threshold for low emissions cars will apply for the purposes of the car lease rental restriction for income tax and corporation tax.

SI 2016/984 reduces the qualifying emissions threshold for the first-year allowance for low emission cars from 75 grams to 50 grams per kilometre driven and 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 1 April 2018. The lease rental restriction of 15% (ITTOIA 2005, s. 48 and CTA 2009, s. 56) applies to certain hire cars including those which are not low emission cars, with the definition of low emission cars being linked to the capital allowances definition. This order inserts a savings provision into SI 2016/984 which provides that the reduction in the main rate capital allowances threshold made by SI 2016/984 will not have effect for expenditure incurred on hiring cars for a period of hire beginning and under a contract entered into before 1 April 2018 for corporation tax purposes or 6 April 2018 for income tax purposes. The order comes into force on 3 August 2017.

The document is available here.

0
Be the first to vote
Subscribe