Introduction Details of the Section
2.Subsection (1)(a) extends the period in which FYAs are available on cars with low CO emissions, including electric cars, by two years to 31 March 2015.
3.Subsection (1)(b) reduces the emissions threshold so that only cars emitting no more than 95 grams of CO per kilometre driven qualify for FYAs.
4.Subsection (2) makes a change so that cars provided for leasing no longer qualify for FYAs. It does this by repealing the override contained in section 46(5) Capital Allowances Act 2001 (CAA 2001) to General Exclusion 6 in section 46(2).
5.Subsection (3) amends the definition of a main rate car in section 104AA(4) CAA 2001 to those cars emitting no more than 130 grams of CO per kilometre driven. This means that cars emitting more than that amount only qualify for the special rate of writing down allowances (currently eight per cent per annum) rather than the main rate of writing down allowances (currently 18 per cent per annum). It also means that the lease rental restriction will apply to cars emitting more than 130 grams of CO per kilometre driven.
6.Subsection (4) removes subsections (2) and (3) from section 77 Finance Act 2008 which set the previous emission thresholds.
7.Subsection (7) provides that the revised threshold for the lease rental restriction will only apply to those lease contracts entered into after the date given by subsection (8).