Finance Act 2002 (c. 23)

Part 3 U.K. Income tax, corporation tax and capital gains tax

Chapter 2 U.K. Other provisions

Capital allowances and related matters U.K.

60 Expense of hiring cars with low carbon dioxide emissions U.K.

(1) In section 578A of the Taxes Act (expenditure on car hire) after subsection (2) (cars to which section 578A applies) insert—

“(2A) This section does not apply to the hiring of a car, other than a motorcycle, if—

(a) it is an electrically-propelled car, or

(b) it is a car with low CO₂ emissions.

(2B) In subsection (2A) above—

• “car” has the meaning given by section 578B;

• “car with low CO₂ emissions” has the meaning given by section 45D of the Capital Allowances Act 2001 (expenditure on cars with low CO₂ emissions to be first-year qualifying expenditure);

• “electrically-propelled car” has the meaning given by that section.”.

(2) The amendment made by this section has effect in relation to expenditure—

(a) which is incurred on or after 17th April 2002 on the hiring of a car which is first registered on or after that date, and

(b) which is incurred on the hiring of a car, for a period of hire which begins on or before 31st March [F1 2013], under a contract entered into on or before 31st March [F1 2013].

Textual Amendments

F1 Word in s. 60(2)(b) substituted (21.7.2008) by Finance Act 2008 (c. 9), s. 77(4)(a)