Skip to content
Solved
SearchBrowse
Sign in

Contents

Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Cars: unavailability or payments for private use

  • Section 143 Deduction for periods when car unavailable
  • Section 144 Deduction for payments for private use
  • Section 145 Modification of provisions where car temporarily replaced
  1. Cars: unavailability or payments for private use
  2. Deduction for payments for private use

Section 144 | Deduction for payments for private use

From legislation.gov.uk

(1)A deduction is to be made from the provisional sum (see subsection (1A)) if, as a condition of the car being available for the employee’s private use, the employee—F1

(a)is required in the tax year in question to pay (whether by way of deduction from earnings or otherwise) an amount of money for that use, and

(b)pays that amount on or before 6 July following that year.F2F3

(1A)In this section “the provisional sum” means the provisional sum calculated under—F4

(a)step 7 of section 121(1) (method of calculating the cash equivalent of the benefit of a car), orF4

(b)step 2 of section 121A(1) (optional remuneration arrangements: method of calculating relevant amount).F4

(2)If the amount paid as mentioned in subsection (1)(b) by the employee in respect of that year is equal to or exceeds the provisional sum, the provisional sum is reduced so that—F5F6

(a)in a case within subsection (1A)(a), the cash equivalent of the benefit of the car for the year is nil, orF6

(b)in a case within subsection (1A)(b), the relevant amount for the purposes of section 120A is nil.F6

(3)Where subsection (2) does not apply, the amount paid as mentioned in subsection (1)(b) by the employee in respect of the year is deducted from the provisional sum in order to give—F7F8F9

(a)in a case within subsection (1A)(a), the cash equivalent of the benefit of the car for the year, orF9

(b)in a case within subsection (1A)(b), the relevant amount for the purposes of section 120A.F9

(4)In this section the reference to the car being available for the employee’s private use includes a reference to the car being available for the private use of a member of the employee’s family or household.

(5)This section is subject to section 145 (modification where car temporarily replaced).

Notes

  1. F1

    Words in s. 144(1) substituted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 29(2)

  2. F2

    S. 144(1)(b) substituted (with effect in accordance with s. 25(3) of the amending Act) by Finance Act 2014 (c. 26), s. 25(1)

  3. F3

    Words in s. 144(1)(b) substituted (with effect in accordance with s. 1(14) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 1(7)(a)

  4. F4

    S. 144(1A) inserted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 29(3)

  5. F5

    Words in s. 144(2) inserted (with effect in accordance with s. 1(14) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 1(7)(b)

  6. F6

    Words in s. 144(2) substituted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 29(4)

  7. F7

    Words in s. 144(3) substituted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 29(5)(a)

  8. F8

    Words in s. 144(3) inserted (with effect in accordance with s. 1(14) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 1(7)(c)

  9. F9

    Words in s. 144(3) substituted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 29(5)(b)

PreviousNext
PrivacyTerms