Section 49 Car ... hire: supplementary

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Amendments

Heading words “or motor cycle” omitted by Finance Act 2009 section 30 and Schedule 11 para 37(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.

(1) In section 48 “car ...¹” means a mechanically propelled road vehicle other than ...¹—

[(za) a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988),]²

(a) [a vehicle]³ of a construction primarily suited for the conveyance of goods or burden of any description, or

(b) [a vehicle]³ of a type not commonly used as a private vehicle and unsuitable for such use.

Amendments

1 Omitted by Finance Act 2009 section 30 and Schedule 11 para 37(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 Para (za) inserted by Finance Act 2009 section 30 and Schedule 11 para 37(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.

3 Inserted by Finance Act 2009 section 30 and Schedule 11 para 37(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.

(1A) In section 48—

“a car that has low CO₂ emissions” has the same meaning as in section 104AA of CAA 2001 (special rate expenditure: main rate car);

“electrically propelled” has the meaning given in section 268B of that Act.

Amendments

Subs (1A) inserted by Finance Act 2009 section 30 and Schedule 11 para 37(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.

(2) In section 48 “a qualifying hire car ...¹” means a car ...¹ which—

(a) is hired under a hire-purchase agreement (see subsection (3)) under which there is no option to purchase,

(b) is hired under a hire-purchase agreement under which there is an option to purchase exercisable on the payment of a sum equal to not more than 1% of the retail price of the car [or motor cycle]² when new, or

[(d) is leased under a long-funding lease (within the meaning of section 70G of CAA 2001).]⁴

Amendments

1 The words “or motor cycle” omitted by Finance Act 2009 section 30 and Schedule 11 para 37(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.

2 Inserted by Corporation Tax Act 2009 section 1322 and Schedule 1 para 590 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).

3 Para (c) omitted by Finance Act 2009 section 30 and Schedule 11 para 37(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.

4 Para (d) inserted by Finance Act 2009 section 30 and Schedule 11 para 37(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.

(3) For this purpose “hire-purchase agreement” means an agreement under which—

(a) goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and

(b) the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following events occurs,

but does not include a conditional sale agreement (see subsection (5)).

(4) The events are—

(a) the exercise of an option to purchase by that person,

(b) the doing of any other specified act by any party to the agreement, and

(5) A “conditional sale agreement” means an agreement for the sale of goods under which—

(a) the purchase price or part of it is payable by instalments, and

(b) the goods are to remain the property of the seller (even though they are to be in the possession of the buyer) until specified conditions as to the payment of instalments or otherwise are met.

(6) In this section ...¹ “new” means unused and not second-hand.

Amendments

1 The words “and section 48” omitted by Finance Act 2009 section 30 and Schedule 11 para 37(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.