Introduction Details of the Schedule Consequential amendments of CAA 2001
19.Paragraph 13 omits subsection (7) from section 33. This subsection explained that the extended meaning of “car” in section 81 of CAA did not apply to section 33, but section 81 is deleted by paragraph 3 above.
20.Paragraph 14 makes amendments to section 45D of CAA, which provides that expenditure on electric cars or those with CO2 emissions of 110g/km or less qualifies for a first-year allowance. These cars still qualify for first-year allowance but the wording of the section has been changed to be consistent with new sections 268A and 268B of CAA.
21.Paragraph 16 amends section 55(6) of CAA (determination of entitlement or liability) so that a company is not entitled to a balancing allowance when the conditions in the anti-avoidance provision in the new section 104F of CAA are met.
22.Paragraph 18 amends section 66 of CAA (list of provisions about disposal values) to omit the reference to section 79 as it is being repealed; new section 208A of CAA is included.
23.Paragraph 19 sets out the consequential changes that are needed to the table in section 84 of CAA (which describes the circumstances where short-life asset treatment is ruled out) to reflect the new definition of hire cars for disabled people. Expenditure on hire cars for disabled people will still qualify for short-life asset treatment.
24.Paragraph 20 makes amendments to section 86 (short-life assets) of CAA. If the final chargeable period for a short life asset pool has not occurred before the four year cut-off, the balance of unrelieved expenditure on a car in a short life asset pool will be taken to either the main pool or special rate pool, depending on its CO2 emissions.
25.Sub-paragraph (2) amends “main pool” in subsection (2)(b) to “appropriate pool” as some special rate cars may be short life assets.
26.Paragraph 22 inserts new section 268D into CAA. New subsections (1) and (2) define the meaning of a hire car for a disabled person and a disabled person. A disabled person is a person in receipt of the listed allowances or supplements (the list is unchanged from that in section 82(4) of CAA).
27.Paragraph 23 amends the defined expressions in Part 2 of Schedule 1 (defined expressions) to reflect the new definitions that are being introduced.
28.Sub-paragraph (3) adds a number of new definitions for the purposes of Part 2 of CAA .
29.Paragraph 25 repeals paragraph 6 in Schedule 19 to Finance Act 2002, that refers to cars in a single asset pool because of their cost, as a consequence of the changes being made by this Schedule.