SCHEDULES

SCHEDULE 11 U.K.Tax relief for business expenditure on cars and motor cycles

Part 2 U.K.Restrictions on deductions for hire expenses

Corporation tax U.K.

48 (1) Section 57 (car or motor cycle hire: supplementary) is amended as follows. U.K.

(2) In subsection (1)—

(a) omit “or motor cycle”,

(b) omit “one”,

(c) before paragraph (a) insert—

“(za) a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988),”, and

(d) in paragraphs (a) and (b), insert at the beginning “a vehicle”.

(3) After that subsection insert—

“(1A) In section 56—

• “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.”

(4) In subsection (2)—

(a) omit “or motor cycle” (in each place),

(b) omit paragraph (c), and

(c) insert at the end—

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

(5) In subsection (6), omit “and section 56”.

(6) In the heading, omit “or motor cycle”.