Paragraph 29

(1)

Section 144 (deduction for payments for private use) is amended as follows.

(2)

In subsection (1), for “calculated under step 7 of section 121(1)” substitute “ (see subsection (1A)) ”.

(3)

After subsection (1) insert

“(1A)
In this section “the provisional sum” means the provisional sum calculated under—
(a)
step 7 of section 121(1) (method of calculating the cash equivalent of the benefit of a car), or
(b)
step 2 of section 121A(1) (optional remuneration arrangements: method of calculating relevant amount).”

(4)

In subsection (2), for the words from “so that” to the end substitute

“so that—
(a)
in a case within subsection (1A)(a), the cash equivalent of the benefit of the car for the year is nil, or
(b)
in a case within subsection (1A)(b), the relevant amount for the purposes of section 120A is nil.”

(5)

In subsection (3)—

(a)

for “In any other case” substitute “ Where subsection (2) does not apply, ” and

(b)

for the words from “give” to the end substitute

“give—
(a)
in a case within subsection (1A)(a), the cash equivalent of the benefit of the car for the year, or
(b)
in a case within subsection (1A)(b), the relevant amount for the purposes of section 120A.”