Corporation Tax Act 2009 section 57

Car hire: supplementary

Section 57 defines key terms used in the car hire restriction rules under section 56, including what counts as a "car", a "qualifying hire car", and related concepts such as low CO2 emissions and electrically propelled vehicles.

• A "car" is any mechanically propelled road vehicle except a motor cycle, a vehicle primarily designed for carrying goods, or a vehicle of a type not commonly used privately and unsuitable for private use
• A "qualifying hire car" is one hired under a hire-purchase agreement with no purchase option, or with a purchase option costing no more than 1% of its retail price when new, or leased under a long-funding lease
• "Low CO2 emissions" and "electrically propelled" take their meanings from the Capital Allowances Act 2001, linking the hire restriction rules to the capital allowances framework
• "New" means unused and not second-hand, and "hire-purchase agreement" takes its meaning from section 1129 of the Corporation Tax Act 2010