SCHEDULE 11Tax relief for business expenditure on cars and motor cycles
Part 2Restrictions on deductions for hire expenses
Election for new regime not to apply in certain cases
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(1)
This paragraph applies where—
(a)
a person incurs expenses on the hiring of a car or motor cycle under an agreement entered into on or before 8 December 2008, and
(b)
the hire period begins before the second relevant date.
(2)
If the person makes an election under this paragraph, none of the amendments made by this Part of this Schedule has effect in relation to any deduction for expenses incurred by the person on the hiring of the car or motor cycle under the agreement.
(3)
The election must be made by notice given to an officer of Revenue and Customs—
(a)
for income tax purposes, on or before the normal time limit for amending a tax return for the tax year in which the relevant chargeable period ends, and
(b)
for corporation tax purposes, no later than 2 years after the end of the relevant chargeable period.
(4)
“The relevant chargeable period” means the first chargeable period (as defined in section 6 of CAA 2001) in which any expenditure by the person on the provision of the car or motor cycle under the agreement was incurred.
(5)
The election is irrevocable.
(6)
All such assessments and adjustments of assessments are to be made as are necessary to give effect to the election.
(7)
For the purpose of this paragraph, an agreement is entered into on the first date on which the following conditions are met—
(a)
there is a contract in writing for the use of the car or motor cycle by the person,
(b)
the contract is unconditional or, if it is conditional, the conditions have been met, and
(c)
no terms remain to be agreed.