Finance Act, 1996
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Amendment of section 4 (benefit of use of a car) of Finance Act, 1982. |
6.—As respects the year of assessment 1996-97 and subsequent years of assessment, section 4 of the Finance Act, 1982 , is hereby amended— | |
(a) by the insertion of the following subsection after subsection (4): | ||
“(4A) (a) Where, for a year of assessment— | ||
(i) a person, in the performance of the duties of his employment, spends 70 per cent. or more of his time engaged on such duties away from the place of business of his employer, and | ||
(ii) in relation to that person, the business mileage exceeds 5,000, | ||
then, if the person so elects in writing to the inspector, the cash equivalent of the benefit of the car for that year in relation to the person shall, instead of being the amount ascertained under subsection (3) or (4), as may otherwise be appropriate, be four-fifths of the amount ascertained under subsection (3). | ||
(b) When requested in writing by the inspector, a person who makes an election under paragraph (a) for a year of assessment shall, within 30 days of the date of such request, furnish to the inspector a relevant log book in relation to that year of assessment. | ||
(c) This subsection shall not apply as respects a year of assessment where— | ||
(i) when requested to do so, a person fails to deliver to the inspector, within the time specified in paragraph (b), a relevant log book in relation to that year, or | ||
(ii) the time spent by a person in the performance of the duties of his employment in that year is, on average, less than 20 hours per week. | ||
(d) The provisions of paragraph (e) of subsection (6) shall apply for the purposes of this subsection as they apply for the purposes of that subsection. | ||
(e) Where a person makes an election under paragraph (a) for a year of assessment, he shall retain the relevant log book in relation to that year for a period of 6 years after the end of the year or for such shorter period as the inspector may authorise in writing.”, | ||
and | ||
(b) in paragraph (a) of subsection (9), by the insertion of the following definition after the definition of “private use”: | ||
“‘relevant log book’, in relation to a person and a year of assessment, means a record, maintained on a daily basis, of the person's business use for the year of assessment of a car or cars in respect of which this section has effect in relation to that person for that year of assessment— | ||
(i) which contains relevant details of distances travelled, nature and location of business transacted and amount of time spent away from the employer's place of business, and | ||
(ii) which is certified by the employer as being, to the best of his knowledge and belief, true and accurate.”. |