Part 2Trading income
F1CHAPTER 5ATrade profits: deductions allowable at a fixed rate
Expenditure on vehicles
94FThe appropriate mileage amount
(1)
In calculating the profits of a trade for a period, the appropriate mileage amount in relation to a relevant vehicle for the period is—
where—
M is the number of miles of business journeys made by a person (other than as a passenger) using that vehicle in the period, and
R is the rate applicable to that kind of vehicle.
(2)
The rates applicable are as follows—
Kind of vehicle | Rate per mile |
|---|---|
Car or goods vehicle | 45p for the first 10,000 miles |
25p after that | |
Motor cycle | 24p |
(3)
In a case where the total number of miles of relevant business journeys made in the period is greater than 10,000, the rate of 45p per mile is available only in relation to 10,000 of those miles.
(4)
“Relevant business journey” means any business journey made in the period by a car or goods vehicle—
(a)
that is used for the purposes of the trade, and
(b)
in relation to which section 94D applies for the period.
(5)
In this section—
“business journey”, in relation to a vehicle used for the purposes of a trade, means any journey, or any identifiable part or proportion of a journey, that is made wholly and exclusively for the purposes of the trade, and
“relevant vehicle” has the same meaning as in section 94D.
(6)
The Treasury may by regulations amend subsection (2) so as to alter the rates or rate bands.
Regulations under this subsection may also make consequential amendments to subsection (3).