The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007

• Citation: S.I. 2007/3068
• Sections: 6

Section 1 Citation and commencement

These Regulations may be cited as the Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 and shall come into force on 6th April 2008.

Section 2 Amendments to the Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001

The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001 are amended as follows.

Section 3 Amendments to the Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001

In regulation 2 (interpretation)—

(a) after the definition of “bi-fuel car” insert–

“bioethanol” has the meaning given in section 2AB of the Hydrocarbon Oil Duties Act 1979 ;

(b) after the definition of “Directive 98/70/ EC ” insert–

“ ITEPA ” means the Income Tax (Earnings and Pensions) Act 2003;

(c) in the definition of “road fuel gas” for “section 168AB(3) of the Income Tax and Corporation Taxes Act 1988” substitute “section 171(1) of ITEPA”;

(d) in the definition of “the value of the appropriate percentage” for “paragraphs 2 to 5D of Schedule 6” substitute “sections 133 to 142 of ITEPA”; and

(e) after the definition of “the value of the appropriate percentage” add–

“unleaded petrol” has the meaning given in section 1(3C) of the Hydrocarbon Oil Duties Act 1979 .

Section 4 Amendments to the Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001

In regulation 4(2)(b) (prescribed reduction of value of appropriate percentage–electrically propelled cars) for “Schedule 6” substitute “section 140 of ITEPA”.

Section 5 Amendments to the Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001

In regulation 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) and in the heading preceding it, for “paragraph 5 of Schedule 6” substitute “section 137 of ITEPA”.

Section 6 Amendments to the Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001

After Regulation 6 insert–

Prescribed reduction of value of appropriate percentage – cars capable of running on bioethanol

(6A)

(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 constructed so as to be capable of being propelled by–

(i) bioethanol, or

(ii) a mixture of bioethanol and unleaded petrol, if the proportion of bioethanol by volume is at least 85%.

(3) The amount prescribed by this paragraph is 2%.