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capital allowance; however the capital allowance is no longer available.70 The Revenue’s original intention to allow costs of travel to and from work under this head was contrary to the capital allowance legislation. |
18A.2.6A Other Exemptions |
ITEPA brings together yet further exemptions from the benefits code. These are the modest private use of a heavy goods vehicle (section 238) the limits of the scope of the charge in respect of cars and vans (section 239) travelling and subsistence during public transports strikes (section 245 formerly ESCA58) transport between work and home for disabled employees (section 246, ex ESC A59) and the provision of certain types of car for disabled employees (section 247, ex ESC A59) and, finally, transport home after late nightworking or the failure of car sharing arrangements (section 248, ex ESC A66). |
18A.2.7 Motor Mileage Allowances |
This exemption was put on a statutory basis in 2001 and those rules are now reenacted in ITEPA.71 If R, the employer, pays E, the employee, a mileage allowance, any profit made by E is taxable under general principles. There was, however, a voluntary administrative arrangement known as the fixed-profit car scheme. The scheme is a safe harbour scheme; sums paid within the limits are safe. The scheme covers only sums paid for business travel—not sums paid for private travel. The scheme now applies to motor cycles and cycles as well as cars and vans. |
Rates for 2003–04 are as follows:72 |