Section 143 — Income Tax (Earnings and Pensions) Act 2003: Deduction for periods when car unavailable

Deduction for periods when car unavailable 143 A1 This section has effect for the purposes of—

a section 121(1) (method of calculating the cash equivalent of the benefit of a car),

and b section 121B(1) (optional remuneration arrangements: meaning of “modified cash equivalent”).

1 A deduction is to be made from the amount carried forward from step 6 of section 121(1) or (as the case may be) step 4 of section 121B(1) if the car has been unavailable on any day during the tax year in question.

2 For the purposes of this section a car is unavailable on any day if the day—

a falls before the first day on which the car is available to the employee, b falls after the last day on which the car is available to the employee, or c falls within a period of 30 days or more throughout which the car is not available to the employee.

3 The amount of the deduction is given by the formula— U Y × A where— U is the number of days in the year on which the car is unavailable, Y is the number of days in that year, and A is the amount carried forward from step 6 of section 121(1) or (as the case may be) step 4 of section 121B(1) .

4 This section is subject to section 145 (modification where car temporarily replaced).