Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 132: Capital contributions by employee
493.This section provides for the deduction that can be made at Step 3 of section 121(1) of this Act in calculating the cash equivalent of the car benefit. The section derives from section 168D(1), (2), (3) and (4) of ICTA.
494.Subsection (1) states when the section applies. That is when the employee contributes to the capital cost of the car or its qualifying accessories.
495.Subsection (2) states for which tax years the deduction can be made.
496.Subsection (3) states the maximum deduction that can be made under this section for any tax year.