[F1578B Expenditure on car hire: supplementaryU.K.
(1)In section 578A “car” means a mechanically propelled road vehicle other than one—
(a)of a construction primarily suited for the conveyance of goods or burden of any description, or
(b)of a type not commonly used as a private vehicle and unsuitable for such use.
References to a car accordingly include a motor cycle.
(2)For the purposes of section 578A, a car is a qualifying hire car if—
(a)it is hired under a hire-purchase agreement (within the meaning of section 784(6)) under which there is an option to purchase exercisable on the payment of a sum equal to not more than 1 per cent. of the retail price of the car when new, or
(b)it is a qualifying hire car for the purposes of Part 2 of the Capital Allowances Act (under section 82 of that Act).
(3)In section 578A and this section “new” means unused and not second-hand.
(4)The power under section 74(4) of the Capital Allowances Act to increase or further increase the sums of money specified in Chapter 8 of Part 2 of that Act includes the power to increase or further increase the sum of money specified in section 578A(2)(b) or (3).]
Textual Amendments
F1Ss. 578A, 578B inserted (with effect in accordance with s. 579 of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 52 (with Sch. 3 para. 113)