I move Financial Resolution No. 13:
(1) THAT, as respects the year of assessment 1992-93 and subsequent years of assessment, section 4 of the Finance Act, 1982 (No. 14 of 1982), be amended—
(a) in paragraph (a) of subsection (3)—
(i) by the substitution of "30 per cent." for "20 per cent.",
(ii) by the substitution of "4½ per cent." for "3 per cent.",
(iii) by the substitution of "3 per cent." for "2 per cent." in each place where it occurs, and
(iv) by the substitution of "1 per cent." for "½ per cent.", and
(b) in subsection (4)—
(i) by the substitution of "15,000" for "10,000" in paragraph (a), and
(ii) by the substitution of the following Table for the Table to that subsection:
"
TABLE
|
Business mileage |
Percentage |
|
|
lower limit |
upper limit |
|
|
(1) |
(2) |
(3) |
|
Miles |
Miles |
|
|
15,000 |
16,000 |
97½ per cent. |
|
16,000 |
17,000 |
95 per cent. |
|
17,000 |
18,000 |
90 per cent. |
|
18,000 |
19,000 |
85 per cent. |
|
19,000 |
20,000 |
80 per cent. |
|
20,000 |
21,000 |
75 per cent. |
|
21,000 |
22,000 |
70 per cent. |
|
22,000 |
23,000 |
65 per cent. |
|
23,000 |
24,000 |
60 per cent. |
|
24,000 |
25,000 |
55 per cent. |
|
25,000 |
26,000 |
50 per cent. |
|
26,000 |
27,000 |
45 per cent. |
|
27,000 |
28,000 |
40 per cent. |
|
28,000 |
29,000 |
35 per cent. |
|
29,000 |
30,000 |
30 per cent. |
|
30,000 |
— |
25 per cent. |
".
(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
This resolution provides that: (a) the value for tax purposes of a company car, which an employee may use for private purposes and with all the running costs paid by the employer, shall be increased from 20 per cent to 30 per cent of the original market value of the car. This is an increase of 50 per cent; (b) where the employee pays some or all of the running costs, the value of the car for tax purposes is reduced in stages from 20 per cent to 12.5 per cent. The resolution provides that the minimum charge of 12.5 per cent will be increased to 18.5 per cent, while the intervening charges between 12.5 per cent and 20 per cent will be increased pro rata; (c) in the coming tax year tapering relief for employees with high business mileage will come into play only for employees who drive at least 15,000 business miles a year, instead of 10,000 business miles at present; and (d) the maximum tapering relief available will be reduced from 100 per cent to 75 per cent.
These changes will apply from 6 April 1992.