Finance Act 2018

Benefit in kind: relief relating to electric vehicles

9. Part 5 of the Principal Act is amended—

(a) in section 121(2)(b)—

(i) in subparagraph (ii), by substituting “running the car,” for “running the car, and”,

(ii) in subparagraph (iii)(II), by substituting “31 December 2018,” for “31 December 2018.”, and

(iii) by inserting the following subparagraphs after subparagraph (iii):

“(iv) notwithstanding subparagraph (ii), where a car made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the car does not exceed €50,000, no amount shall be treated as emoluments of the employment,

(v) notwithstanding subparagraph (ii), where—

(I) a car made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle,

(II) the original market value of the car exceeds €50,000, and

(III) the car was first made available to the employee during the period 10 October 2017 to 9 October 2018,

no amount shall be treated as emoluments of the employment, and

(vi) where a car made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the car exceeds €50,000, the cash equivalent of the benefit of the car ascertained under subsection (3)(a) or (4)(a), as the case may be, shall be computed on the original market value of the car reduced by €50,000.”.

and

(b) in section 121A(2)(b)—

(i) in subparagraph (ii), by substituting “running the van,” for “running the van, and”,

(ii) in subparagraph (iii)(II), by substituting “31 December 2018,” for “31 December 2018.”, and

(iii) by inserting the following subparagraphs after subparagraph (iii):

“(iv) notwithstanding subparagraph (ii), where a van made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the van does not exceed €50,000, no amount shall be treated as emoluments of the employment,

(v) notwithstanding subparagraph (ii), where—

(I) a van made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle,

(II) the original market value of the van exceeds €50,000, and

(III) the van was first made available to the employee during the period 10 October 2017 to 9 October 2018,

no amount shall be treated as emoluments of the employment, and

(vi) where a van made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the van exceeds €50,000, the cash equivalent of the benefit of the van ascertained under subsection (3) shall be computed on the original market value of the van reduced by €50,000.”.