Section 48 Car ... hire
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Amendments
Heading words “or motor cycle” omitted by Finance Act 2009 section 30 and Schedule 11 para 36(7) in relation to expenses incurred on the hiring of a car or motorcycle under an agreement under which the hire period begins on or after 6 April 2009.
(1) This section applies if, in calculating the profits of a trade, a deduction is allowed for expenses incurred on the hiring of a car [which is not—
(a) a car that is first registered before 1 March 2001,
(b) a car that has low CO2 emissions,
(c) a car that is electrically propelled, or
(d) a qualifying hire car.]1
Amendments
1 Substituted by Finance Act 2009 section 30 and Schedule 11 para 36(2) in relation to expenses incurred on the hiring of a car or motorcycle under an agreement under which the hire period begins on or after 6 April 2009.
(2) The amount of the deduction which would otherwise be allowable is reduced by [15%]1.
Amendments
1 Substituted by Finance Act 2009 section 30 and Schedule 11 para 35(3) in relation to expenses incurred on the hiring of a car or motorcycle under an agreement under which the hire period begins on or after 6 April 2009.
(3) Subsection (4) applies if [a deduction is reduced as a result of subsection (2), or a corresponding provision,]1 and subsequently—
(a) there is a rebate (however described) of the hire charges, or
(b) a debt in respect of any of the hire charges is released otherwise than as part of a statutory insolvency arrangement.
Amendments
1 Substituted for the words “the deduction is reduced as a result of subsection(2)” by Corporation Tax Act 2009 section 1322 and Schedule 1 para 589(2) for 2009-10 and later tax years (for income tax and capital gains tax purposes), and for accounting periods ending on or after 1 April 2009 (for corporation tax purposes).
(4) The amount that, as a result of the rebate or release—
(a) is brought into account as a receipt of the trade ...1, or
(b) is treated as a post-cessation receipt under section 249 (debts released after cessation),
is reduced by [15%]2.
Amendments
1 Omitted by Corporation Tax Act 2009 section 1322 and Schedule 1 para 589(3) and repealed by Corporation Tax Act 2009 section 1326 and Schedule 3 Part 1 for 2009-10 and later tax years (for income tax and capital gains tax purposes), and for accounting periods ending on or after 1 April 2009 (for corporation tax purposes).
2 Substituted for the words “multiplying it by the fraction in subsection (2)” by Finance Act 2009 section 30 and Schedule 11 para 36(4) in relation to expenses incurred on the hiring of a car or motorcycle under an agreement under which the hire period begins on or after 6 April 2009.
(4A) In this section “corresponding provision” means—
(a) section 56(2) of CTA 2009 (car ...1 hire: trade profits and property income),
(b) section 1251(2) of CTA 2009 (car ...1 hire: expenses of management), or
(c) section 76ZN(2) of ICTA (car ...1 hire: expenses of insurance companies).
Amendments
Subs (4A) inserted by Corporation Tax Act 2009 section 1322 and Schedule 1 para 589(4) for 2009-10 and later tax years (for income tax and capital gains tax purposes), and for accounting periods ending on or after 1 April 2009 (for corporation tax purposes).
1 The words “or motor cycle” omitted by Finance Act 2009 section 30 and Schedule 11 para 36(5) in relation to expenses incurred on the hiring of a car or motorcycle under an agreement under which the hire period begins on or after 6 April 2009.
(5) ...
Amendments
Subs (5) omitted by Finance Act 2009 section 30 and Schedule 11 para 36(6) in relation to expenses incurred on the hiring of a car or motorcycle under an agreement under which the hire period begins on or after 6 April 2009.
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