Part 2

Trading income
Chapter 4

Trade profits: rules restricting deductions

Car or motor cycle hire

Car ... hire
48
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 CO
2
emissions,
c
a car that is electrically propelled, or
d
a qualifying hire car.
2
The amount of the deduction which would otherwise be allowable is reduced by 15%.
3
Subsection (4) applies if a deduction is reduced as a result of subsection (2), or a corresponding provision, 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.
4
The amount that, as a result of the rebate or release—
a
is brought into account as a receipt of the trade ..., or
b
is treated as a post-cessation receipt under section 249 (debts released after cessation),
is reduced by 15% .
4A
In this section “
corresponding provision
” means—
a
section 56(2) of CTA 2009 (car
... hire: trade profits and property income),
or
b
section 1251(2) of CTA 2009 (car
... hire: expenses of management),
including as applied by section 82(4) of FA 2012.
...
c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Words in s. 48(4)(a) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(3), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
Words in s. 48(4A)(a)(b)(c) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 36(5)
Word in s. 48(4A)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 126(a)
Words in s. 48(4A)(b) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 126(b)
Word in s. 48(4) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(4)
Word in s. 48(2) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(3)
S. 48(4A)(c) and word omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 126(c)
S. 48(4A) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(4) (with Sch. 2 Pts. 1, 2)
Words in s. 48(3) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(2) (with Sch. 2 Pts. 1, 2)
Words in s. 48 heading omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 36(7)
Words in s. 48(1) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(2)
S. 48(5) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 36(6)