Finance Act, 1973
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Limit on renewals allowance for cars. |
26.—In determining what amount (if any) is allowable— | |
(a) to be deducted in computing profits or gains chargeable to tax under Schedule D, or | ||
(b) to be deducted from emoluments chargeable to tax under Schedule E, or | ||
(c) to be taken into account for the purposes of a management expenses claim under section 214 of the Income Tax Act, 1967 , | ||
in respect of capital expenditure, being expenditure exceeding £2,500, incurred on the provision of a vehicle to which this section applies, the excess over £2,500 shall be disregarded for all purposes; but if on the replacement of the vehicle any amount becomes allowable as aforesaid in respect of capital expenditure on any other vehicle, any deduction falling to be made, in determining the last-mentioned amount, for the value or proceeds of sale of the replaced vehicle or otherwise in respect thereof shall be reduced in the proportion which £2,500 bears to the cost of the replaced vehicle. |