Capital Allowances Act 2001 Schedule 3 paragraph 54

Vehicles provided by employees in 1990-91

Schedule 3 paragraph 54 provides transitional rules for employees who supplied their own mechanically propelled road vehicle for work use, bridging the change in tax treatment between 1989-90 and 1990-91.

• Applies where an employee provided their own road vehicle for use in performing the duties of their office or employment at the start of the 1990-91 tax year
• The vehicle must also have been provided by the employee at the end of the 1989-90 tax year for the same work duties, but without that provision being necessary at that time
• The employee is treated as having incurred capital expenditure on the vehicle in the 1990-91 tax year, with the amount being the open market value of the vehicle as at 6 April 1990
• The employee is treated as owning the vehicle as a result of having incurred that deemed capital expenditure, enabling capital allowances to be claimed under Part 2 of the Act