Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 143: Deduction for periods when car unavailable
544.This section quantifies a deduction that can be made at Step 7 of section 121(1) of this Act in calculating the cash equivalent, because a car is not available at some time during the tax year. The section derives from part of paragraph 6 and paragraph 9 of Schedule 6 to ICTA.
545.Subsection (1) provides for the deduction.
546.Subsection (2) defines the periods of non-availability. They cover the period from the beginning of the tax year involved to the date on which the car first became available and the period from the date when the car ceased permanently to be available to the end of the tax year. There can also be one or more periods of temporary non-availability for each period of continuous non-availability of 30 days or more. Such periods can span two tax years, ie the 30 days or more do not have to fall wholly within one tax year.
547.Subsection (3) gives a formula to calculate the appropriate deduction.
548.Subsection (4) makes this section subject to a further provision that applies if the car is temporarily replaced.