Part 2

Trading income
Chapter 4

Trade profits: rules restricting deductions

Car or motor cycle hire

Car ... hire: supplementary
49
1
In section 48 “car ...” means a mechanically propelled road vehicle other than ...—
za
a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988),
a
a vehicle of a construction primarily suited for the conveyance of goods or burden of any description, or
b
a vehicle of a type not commonly used as a private vehicle and unsuitable for such use.
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.
2
In section 48 “a qualifying hire car ...” means a car ... which—
a
is hired under a hire-purchase agreement ... 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 ... when new, or
c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d
is leased under a long-funding lease (within the meaning of section 70G of
CAA
2001).
3
For this purpose “
hire-purchase agreement
” has the meaning given by section 998A of ITA 2007.
6
In this section ... “new” means unused and not second-hand.
Words in s. 49(2) 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. 37(4)(a)
Words in s. 49(2)(a) repealed (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 254(2), Sch. 10 Pt. 9 (with Sch. 9 paras. 1-9, 22)
S. 49(2)(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. 37(4)(b)
Words in s. 49(1) 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. 37(2)(a)
S. 49(2)(d) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(4)(c)
Words in s. 49 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. 37(6)
S. 49(3) substituted (1.4.2010) for s. 49(3)-(5) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 254(3) (with Sch. 9 paras. 1-9, 22)
Words in s. 49(1)(a) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(2)(d)
S. 49(1A) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(3)
Words in s. 49(6) 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. 37(5)
Word in s. 49(1) 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. 37(2)(b)
S. 49(1)(za) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(2)(c)
Words in s. 49(1)(b) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(2)(d)