LegalizeThe Income Tax (Cash Equivalents of Car Benefits) Order 1987
Made: 5th November 1987
Laid before the House of Commons: 17th November 1987
Coming into force: 6th April 1988
The Treasury, in exercise of the powers conferred on them by section 64(4) of the Finance Act 1976[^f00001], hereby make the following Order:
1
This Order may be cited as the Income Tax (Cash Equivalents of Car Benefits) Order 1987 and shall come into force on 6th April 1988.
2
In Part I of Schedule 7 to the Finance Act 1976 (Tables of flat rate cash equivalents) for Tables A, B and C there shall be substituted the following Tables—
| Cylinder capacity of car in cubic centimetres | ||
|---|---|---|
| Age of car at end of relevant year of assessment | Age of car at end of relevant year of assessment | |
| Under 4 years | 4 years or more | |
| 1,400 or less | £580 | £380 |
| More than 1,400, but not more than 2,000 | £770 | £520 |
| More than 2,000 | £1,210 | £800 |
| Original market value of car | ||
| --- | --- | --- |
| Age of car at end of relevant year of assessment | Age of car at end of relevant year of assessment | |
| Under 4 years | 4 years or more | |
| Less than £6,000 | £580 | £380 |
| £6,000 or more, but less than £8,500 | £770 | £520 |
| £8,500 or more, but not more than £19,250 | £1,210 | £800 |
| Original market value of car | ||
| --- | --- | --- |
| Age of car at end of relevant year of assessment | Age of car at end of relevant year of assessment | |
| Under 4 years | 4 years or more | |
| More than £19,250, but not more than £29,000 | £1,595 | £1,070 |
| More than £29,000 | £2,530 | £1,685 |
Signed
Peter Lloyd — Mark Lennox-Boyd — Two of the Lords Commissioners of Her Majesty’s Treasury — 5th November 1987
Explanatory note
(This note is not part of the Order)
Section 64 of the Finance Act 1976 provides that in certain circumstances a person employed in director’s or higher-paid employment is chargeable to income tax in respect of the benefit of a car made available for private use by reason of his employment. The cash equivalent of such a benefit is, subject to the provisions of the section, to be ascertained from Tables A, B and C in Part I of Schedule 7 to that Act.
This Order, with effect from 6th April 1988, substitutes such Tables for those substituted by S.I. 1986/703.
Footnotes
[^f00001]: 1976 c. 40; relevant amendments to section 64 were made by section 51(2) of the Finance Act 1980 (c. 48), section 68(3) of the Finance Act 1981 (c. 35), and section 46(2) and (3) of the Finance Act 1982 (c. 39).
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