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Amendment of Part 11 (capital allowances and expenses for certain road vehicles) of Principal Act.
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61.—(1) Part 11 of the Principal Act is amended—
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(a) in section 373(2)—
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(i) in paragraph (l), by the substitution of “mechanically propelled vehicle;” for “mechanically propelled vehicle.”,
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(ii) subject to subparagraph (iii), by the insertion of the following after paragraph (l):
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“(m) £17,000, where the expenditure was incurred—
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(i) in an accounting period ending on or after 1 January 2001, or
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(ii) in a basis period for the year of assessment 2000-2001 or for a subsequent year of assessment, where that basis period ends on or after 1 January 2001.”,
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and
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(iii) as respects the year of assessment 2002 and subsequent years of assessment by the substitution in paragraph (m) of “€21,585.55” for “£17,000” (as inserted by subparagraph (ii)),
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(b) in subsection (1) of section 376—
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(i) by the insertion before the definition of “qualifying expenditure” of the following:
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“‘basis period’ has, subject to any necessary modification, the meaning assigned to it in section 306;”,
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(ii) in the definition of “relevant amount”—
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(I) by the substitution in paragraph (e) of “£16,500,” for “£16,500;”, and
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(II) subject to clause (III), by the insertion of the following after paragraph (e):
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“(f) £17,000, in relation to qualifying expenditure incurred—
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(i) in an accounting period ending on or after 1 January 2001, or
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(ii) in a basis period for the year of assessment 2000-2001 or for a subsequent year of assessment, where that basis period ends on or after 1 January 2001;”,
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and
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(III) as respects the year of assessment 2002 and subsequent years of assessment by the substitution in paragraph (f) of “€21,585.55” for “£17,000” (as inserted by clause (II)),
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and
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(c) in subsection (2) of section 376, by the substitution of the following for that subsection:
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“(2) Where for any year of assessment or accounting period a deduction is claimed by any person in respect of qualifying expenditure and that expenditure is incurred in respect of a vehicle the relevant cost of which exceeds the relevant amount, the amount of the deduction to be allowed in respect of that qualifying expenditure shall be reduced by an amount which bears to the amount of the qualifying expenditure the same proportion as the excess of the relevant cost of the vehicle over the relevant amount bears to the relevant cost of the vehicle.”.
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(2) Subsection (1)(c) shall apply in relation to qualifying expenditure incurred—
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(a) in an accounting period ending on or after 1 January 2001, or
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(b) in a basis period for the year of assessment 2000-2001 or for a subsequent year of assessment, where that basis period ends on or after 1 January 2001.
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