Income Tax (Trading and Other Income) Act 2005 section 94E

Excluded vehicles

Section 94E defines which vehicles count as "excluded vehicles" for the purposes of the rules in section 94D on vehicle expenditure, based on how their cost has been treated for tax purposes.

• A car, motorcycle or goods vehicle used for trade purposes is an "excluded vehicle" if either of two conditions is met
• Condition A: the trader has at any time claimed capital allowances under Part 2 of the Capital Allowances Act 2001 for expenditure on providing the vehicle
• Condition B: the vehicle is a goods vehicle or motorcycle and any part of its purchase cost has been deducted as an expense in calculating profits on the cash basis
• "Any relevant trade or business" means any trade or property business carried on by the same person who carries on the trade in which the vehicle is used