The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001

• Citation: S.I. 2001/1123
• Sections: 8

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001 and shall come into force on 12th April 2001.

(2) These Regulations have effect for the year 2002–03 and subsequent years of assessement.

Section 2 Interpretation

In these Regulations—

“bi-fuel car” means a car which is capable of being propelled by petrol and road fuel gas;

“diesel” means any diesel fuel within the definition in Article 2 of Directive 98/70/ EC ;

“Directive 98/70/EC ” means Directive 98/70/EC of the European Parliament and of the Council relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/ EEC ;

“petrol” has the meaning given by Article 2 of Directive 98/70/EC ;

“road fuel gas” has the meaning given by section 168AB(3) of the Income and Corporation Taxes Act 1988;

“Schedule 6” means Schedule 6 to the Income and Corporation Taxes Act 1988;

“the value of the appropriate percentage” means the value of the appropriate percentage as determined in accordance with paragraphs 2 to 5D of Schedule 6.

Section 3 Prescribed reduction of value of appropriate percentage—cars propelled solely by diesel

(1) In the circumstances prescribed by paragraph (2) the value of the appropriate percentage shall be reduced by the amount prescribed by paragraph (3).

(2) The circumstances prescribed by this paragraph are circumstances where the car—

(a) is first registered on or after 1st January 1998,

(b) is propelled solely by diesel, and

(c) has been type-approved to the emission limit values set out in row B of the table in section 5.3.1.4 of Annex I to Council Directive 70/220/EEC as amended.

(3) The amount prescribed is the percentage amount by which the appropriate percentage for the year ascertained in accordance with paragraphs 2 to 5C of Schedule 6 is increased by virtue of paragraph 5D of that Schedule.

Section 4 Prescribed reduction of value of appropriate percentage—electrically propelled cars

(1) In the circumstances prescribed by paragraph (2) the value of the appropriate percentage shall be reduced by the amount prescribed by paragraph (3).

(2) The circumstances prescribed by this paragraph are circumstances where the car—

(a) is first registered on or after 1st January 1998, and

(b) is an electically propelled vehicle for the purposes of Schedule 6.

(3) The amount prescribed by this paragraph is 6%.

Section 5 Prescribed reduction of value of appropriate percentage—hybrid cars capable of being propelled by electricity and petrol

(1) In the circumstances prescribed by paragraph (2) the value of the appropriate percentage shall be reduced by the amount prescribed by paragraph (3).

(2) The circumstances prescribed by this paragraph are circumstances where the car—

(a) is first registered on or after 1st January 1998, and

(b) is capable of being propelled by electicity and petrol.

(3) The amount prescribed by this paragraph shall be determined by the formula—

where—

A is 2%, and

B is 1% for each 20 grams per kilometre by which the CO2 emissions figure is less than the lower threshold provided for in the Table in paragraph 4(1) of Schedule 6.

Section 6 Prescribed reduction of value of appropriate percentage—cars propelled solely by road fuel gas and bi-fuel cars to which paragraph 5 of Schedule 6 applies

(1) In the circumstances prescribed by paragraph (2) the value of the appropriate percentage shall be reduced by the amount prescribed by paragraph (3).

(2) The circumstances prescribed by this paragraph are circumstances where the car—

(a) is first registered on or after 1st January 1998 and is propelled solely by road fuel gas, or

(b) is a bi-fuel car to which paragraph 5 of Schedule 6 applies.

(3) The amount prescribed by this paragraph shall be determined by the formula—

where—

A is 1%, and

B is 1% for each 20 grams per kilometre by which the CO2 emissions figure is less than the lower threshold provided for in the Table in paragraph 4(1) of Schedule 6.

Section 7 Prescribed reduction of value of appropriate percentage—bi-fuel cars to which paragraph 5 of Schedule 6 does not apply

(1) In the circumstances prescribed by paragraph (2) the value of the appropriate percentage shall be reduced by the amount prescribed by paragraph (3).

(2) The circumstances prescribed by this paragraph are circumstances where the car—

(a) is first registered on or after 1st January 1998,

(b) is a bi-fuel car either—

(i) on the date on which it is first registered, or

(ii) by virtue of equipment added after the date on which it is first registered, and

(c) is not a car to which paragraph 5 of Schedule 6 applies.

(3) The amount prescribed by this paragraph is 1%.

Section 8 Amendment to the Income Tax (Replacement Cars) Regulations 1994

(1) Amend the Income Tax (Replacement Cars) Regulations 1994 as follows.

(2) In regulation 5 for “Paragraphs 2, 4 and 7 shall each” substitute “Paragraph 7 shall”.