Finance Act, 1992

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Amendment of section 4 (benefit of use of a car) of Finance Act, 1982.

8.—As respects the year 1992-93 and subsequent years of assessment, section 4 of the Finance Act, 1982 , is hereby amended—

(a) in paragraph (a) of subsection (3)—

(i) by the substitution of “30 per cent.” for “20 per cent.”,

(ii) by the substitution of “4 1/2 per cent.” for “3 per cent.” in subparagraph (i),

(iii) by the substitution of “3 per cent.” for “2 per cent.”, in subparagraph (ii) and in subparagraph (iii), and

(iv) by the substitution of “1 per cent.” for “1/2 per cent.” in subparagraph (iv),

and

(b) in subsection (4)—

(i) by the substitution of “15,000” for “10,000” in paragraph (a), and

(ii) by the substitution—

(I) as respects the year 1992-93, of the Table set out in Part I of the First Schedule ,

(II) as respects the year 1993-94, of the Table set out in Part II of the First Schedule ,

(III) as respects the year 1994-95, of the Table set out in Part III of the First Schedule ,

(IV) as respects the year 1995-96, of the Table set out in Part IV of the First Schedule , and

(V) as respects the year 1996-97 and subsequent years of assessment, of the Table set out in Part V of the First Schedule

for the Table to that subsection,

and the said paragraphs (a) of the said subsections (3) and (4), as so amended, are set out, respectively, in the Table to this section.

TABLE

(a) The cash equivalent of the benefit of a car for a year of assessment shall be 30 per cent. of the original market value of the car, but shall be reduced—

(i) where no part of the cost, for that year, of the fuel used in the course of the private use of the car by the employee is borne directly or indirectly by the employer, by 41/2 per cent. of the original market value of the car,

(ii) where no part of the cost, for that year, of the insurance of the car is borne directly or indirectly by the employer, by 3 per cent. of the original market value of the car,

(iii) where no part of the cost, for that year, of repair and servicing of the car is borne directly or indirectly by the employer, by 3 per cent. of the original market value of the car, and

(iv) where no part of the excise duty, for that year, on the licence under section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952 , relating to the car is borne directly or indirectly by the employer, by 1 per cent. of the original market value of the car.

(a) Where, in relation to a person, the business mileage for a year of assessment exceeds 15,000, the cash equivalent of the benefit of the car for that year, instead of being the amount ascertained under subsection (3), shall be the percentage of that amount applicable to that business mileage under the Table to this subsection.