SCHEDULES
SCHEDULE 7Taxation of Directors and Others in respect of Cars
PART IISupplementary Provisions
Application of Tables A and B
1
1
In the case of cars with an original market value of £6,000 or less, Table A applies to those having an internal combustion engine with one or more reciprocating pistons, and Table B applies to other cars.
2
A car's cylinder capacity is the cylinder capacity of its engine calculated as for the purposes of the [1971 c. 10.] Vehicles (Excise) Act 1971 or the [1972 c. 10 (N.I.).] Vehicles (Excise) Act (Northern Ireland) Act 1972.
Reduction for periods when car not available for use
2
1
If for any part of the relevant year the car was unavailable, the cash equivalent is to be reduced by an amount which bears to the full amount of the equivalent (ascertained under Part I of this Schedule) the same proportion as the number of days in the year on which the car was unavailable bears to 365.
2
The car is to be treated as having been unavailable on any day if—
a
it was not made available to the employee until after that day, or it had ceased before that day to be available to him; or
b
it was incapable of being used at all throughout a period of not less than 30 consecutive days of which that day was one.
Car used preponderantly for business purposes
3
1
The cash equivalent derived from Table A, B or C is to be reduced (or, where paragraph 2 applies, further reduced) by half if it is shown to the inspector's satisfaction that the employee was required by the nature of his employment to make, and made use of the car preponderantly for business travel, which means that such travel must have amounted to at least 25,000 miles in the relevant year.
2
In relation to a car which for part of the year was unavailable in the sense of paragraph 2 above, the figure of 25,000 miles above mentioned is proportionately reduced.
Reduction for employee paying for use of car
4
If in the relevant year the employee was required, as a condition of the car being available for his private use, to pay any amount of money (whether by way of deduction from his emoluments or otherwise) for that use, the cash equivalent—
a
is to be reduced (or, if already reduced under the foregoing paragraphs, further reduced) by the amount so paid by the employee in or in respect of the year, or
b
if that amount exceeds the equivalent shown in the applicable Table in Part I of this Schedule, is nil.