The Capital Allowances Act 2001 (Car Emissions) (Extension of First-year Allowances) (Amendment) Order 2021
| Jurisdiction | UK Non-devolved |
| Citation | SI 2021/120 |
| Year | 2021 |
2021 No. 120
Corporation Tax
Income Tax
The Capital Allowances Act 2001 (Car Emissions) (Extension of First-year Allowances) (Amendment) Order 2021
Made 4th February 2021
Laid before the House of Commons 5th February 2021
Coming into force 1st April 2021
The Treasury make this Order in exercise of the powers conferred by sections 45D(1A) and (7), 45DA(1A), 45E(1A), 104AA(5) and (6) of the Capital Allowances Act 20011.
Citation, commencement, effect and interpretation
1.—(1) This Order may be cited as the Capital Allowances Act 2001 (Car Emissions) (Extension of First-year Allowances) (Amendment) Order 2021 and comes into force on 1st April 2021.
(2) The amendment made by—
(a)
(a) article 3(b) has effect in relation to expenditure incurred on or after 1st April 2021,
(b)
(b) article 6 has effect in relation to expenditure incurred on or after the relevant date.
(3) Paragraph (2)(b) is subject to article 7.
(4) In this Order “the relevant date” means—
(a)
(a) in the case of income tax, 6th April 2021, and
(b)
(b) in the case of corporation tax, 1st April 2021.
Amendment of the Capital Allowances Act 2001
2. The Capital Allowances Act 2001 is amended as provided for in articles 3 to 6.
3. In section 45D (expenditure on cars with low carbon dioxide emissions)—
(a) in subsection (1)(a)2for “2021” substitute “2025”, and
(b) in subsection (4)3for “50” substitute “0”.
4. In section 45DA(1)(a) (expenditure on zero-emission goods vehicles)4for “11 years” substitute “15 years”.
5. In section 45E(1)(a) (expenditure on plant or machinery for gas refuelling station)5for “2021” substitute “2025”.
6. In section 104AA(4) (meaning of “main rate car”)6for “110” substitute “50”.
Savings
7. Section 104AA(4) of the Capital Allowances Act 2001 continues to have effect as if it had not been amended by article 6 for the purposes of section 49(1A) (car hire: supplementary) of the Income Tax (Trading and Other Income) Act 20057and section 57(1A) (car hire: supplementary) of the Corporation Tax Act 20098, in relation to expenditure incurred in the hiring of a car—
(a) for a period of hire which begins before the relevant date, and
(b) under a contract entered into before that date.
David Rutley
James Morris
Two of the Lords Commissioners of Her Majesty’s Treasury
4th February 2021
EXPLANATORY NOTE
(This note is not part of the Order)
This Order amends sections 45D, 45DA, 45E and 104AA of the Capital Allowances Act 2001 (c. 2). These sections set out the conditions to be met to qualify for 100% first-year allowances on expenditure in respect of cars with low carbon dioxide emissions (section 45D), zero-emission goods vehicles (section 45DA) and plant and machinery for gas refuelling stations (section 45E). Section 104AA sets out the conditions to qualify for the main rate allowance on expenditure in respect of cars with low carbon dioxide emissions.
Article 3 extends the first-year allowance for cars with low carbon dioxide emissions for a further four years to 31st March 2025...
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