Part 3Trading income

Chapter 4Trade profits: rules restricting deductions

57Car F1... hire: supplementary

(1)

In section 56 “car F2...” means a mechanically propelled road vehicle other than F3...—

F4(za)

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

(a)

F5a vehicle of a construction primarily suited for the conveyance of goods or burden of any description, or

(b)

F6a vehicle of a type not commonly used as a private vehicle and unsuitable for such use.

F7(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.

(2)

In section 56 “a qualifying hire car F8...” means a car F8... which—

(a)

is hired under a hire-purchase agreement F9... 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 F8... when new, or

F10(c)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(d)

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

F12(3)

For this purpose “hire-purchase agreement” has the meaning given by section 1129 of CTA 2010.

(6)

In this section F13... “new” means unused and not second-hand.