380L Emissions-based limits for certain cars.

(1) In relation to a vehicle to which this Part applies, where an allowance which, apart from this section, would be made under section 284 is to be increased or reduced, as the case may be, by virtue of this section, any reference in the Tax Acts to an allowance made under section 284 shall be construed as a reference to that allowance as increased or reduced under this section.

(2) In relation to a vehicle to which this Part applies, the allowances under section 284 to be taken into account for the purposes of Chapter 2 of Part 9 in computing the amount of expenditure still unallowed at any time shall be determined by reference to the allowances computed in accordance with this section, and the expenditure incurred on the provision of the vehicle to be taken into account for the purposes of that Chapter shall be determined accordingly.

(3) Section 284 shall apply as if, for the purposes of that section, the actual cost of the vehicle were taken to be—

(a) in the case of a vehicle in Category ^[2]>A, B or C^<[2][2]>A or B^<[2], an amount equal to the specified amount,

(b) in the case of a vehicle in Category ^[6]>D or E^<[6][6]>C^<[6], where the retail price of the vehicle at the time it was made was—

(i) less than or equal to the specified amount, 50 per cent of that price, and

(ii) greater than the specified amount, 50 per cent of the specified amount,

and

(c) in the case of a vehicle in Category ^[10]>F or G^{<[10][14]>[10]>}D, E, F or G^{<[10]<[14][14]>}D, E or F^<[14], nil.

(4) Where expenditure has been incurred on the provision of a vehicle to which this Part applies, then any balancing allowance or balancing charge shall be computed, in a case where there are sale, insurance, salvage or compensation moneys, as if the amount of those moneys (or, where in consequence of any provision of the Taxes Acts, other than Part 11 or this section, some other amount is to be treated as the amount of those moneys, that other amount) were—

(a) in the case of a vehicle in Category ^[3]>A, B or C^<[3][3]>A or B^<[3], increased or reduced, as the case may be, in the proportion which the specified amount bears to the actual amount of that expenditure,

(b) in the case of a vehicle in Category ^[7]>D or E^<[7][7]>C^<[7] where the expenditure incurred was—

(i) less than or equal to the specified amount, reduced by 50 per cent, and

(ii) greater than the specified amount, reduced in the proportion which 50 per cent of the specified amount bears to that actual amount of that expenditure,

and

(c) in the case of a vehicle in Category ^[11]>F or G^{<[11][15]>[11]>}D, E, F or G^{<[11]<[15][15]>}D, E or F^<[15], nil.

(5) (a) Where expenditure is incurred on the provision of a vehicle to which this Part applies and—

(i) the person providing the vehicle (in this section referred to as the “prior owner”) sells the vehicle or gives it away so that subsection (5) of section 289, or that subsection as applied by subsection (6) of that section, applies in relation to the purchaser or donee,

(ii) the prior owner sells the vehicle and the sale is a sale to which section 312 applies, or (iii) in consequence of a succession to the trade or profession of the prior owner, section 313(1) applies,

then, in relation to the purchaser, donee or successor, the price which the vehicle would have fetched if sold in the open market or the expenditure incurred by the prior owner on the provision of the vehicle shall be treated for the purposes of section 289, 312 or 313 as—

(I) in the case of a vehicle in Category ^[4]>A, B or C^<[4][4]>A or B^<[4], an amount equal to the specified amount,

(II) in the case of a vehicle in Category ^[8]>D or E^<[8][8]>C^<[8] where the retail price of the vehicle at the time it was made was—

(A) less than or equal to the specified amount, 50 per cent of that price, and

(B) greater than the specified amount, 50 per cent of the specified amount,

and

(III) in the case of a vehicle in Category ^[12]>F or G^{<[12][16]>[12]>}D, E, F or G^{<[12]<[16][16]>}D, E or F^<[16], nil,

and, in the application of subsection (4) to the purchaser, donee or successor, references to the expenditure incurred on the provision of the vehicle shall be construed as references to the expenditure so incurred by the prior owner.

(b) Where paragraph (a) has applied on any occasion in relation to a vehicle, and no sale or gift of the vehicle has since occurred other than one to which either section 289 or 312 applies, then, in relation to all persons concerned, the like consequences under paragraph (a) shall ensue as respects a gift, sale or succession within subparagraphs (i) to (iii) of that paragraph which occurs on any subsequent occasion as would ensue if the person who in relation to that sale, gift or succession is the prior owner had incurred expenditure on the provision of the vehicle of an amount equal to the expenditure so incurred by the person who was the prior owner on the first-mentioned occasion.

(6) In the application of section 290 to a case where the vehicle is the new machinery referred to in that section, the expenditure shall be disregarded in so far as it exceeds—

(a) in the case of a vehicle in Category ^[5]>A, B or C^<[5][5]>A or B^<[5], the specified amount,

(b) in the case of a vehicle in Category ^[9]>D or E^<[9][9]>C^<[9], where the retail price of the vehicle at the time it was made was—

(i) less than or equal to the specified amount, 50 per cent of that price, and

(ii) greater than the specified amount, 50 per cent of the specified amount,

and

(c) in the case of a vehicle in Category ^[13]>F or G^{<[13][17]>[13]>}D, E, F or G^{<[13]<[17][17]>}D, E or F^<[17], nil,

but without prejudice to the application of subsections (1) to (5) to the vehicle.

(7) Expenditure shall not be regarded for the purposes of this Part as having been incurred by a person in so far as the expenditure has been or is to be met directly or indirectly by the State or by any person other than the first-mentioned person.