Income Tax (Trading and Other Income) Act 2005

49 Car F1 ... hire: supplementary U.K.

(1) In section 48 “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) [F5 a vehicle] of a construction primarily suited for the conveyance of goods or burden of any description, or

(b) [F6 a vehicle] of a type not commonly used as a private vehicle and unsuitable for such use.

[F7 (1A) In section 48—

• “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 48 “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 998A of ITA 2007.]

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

Textual Amendments

F1 Words in s. 49 heading omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 37(6)

F2 Words in s. 49(1) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 37(2)(a)

F3 Word in s. 49(1) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 37(2)(b)

F4 S. 49(1)(za) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(2)(c)

F5 Words in s. 49(1)(a) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(2)(d)

F6 Words in s. 49(1)(b) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(2)(d)

F7 S. 49(1A) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(3)

F8 Words in s. 49(2) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 37(4)(a)

F9 Words in s. 49(2)(a) repealed (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 254(2), Sch. 10 Pt. 9 (with Sch. 9 paras. 1-9, 22)

F10 S. 49(2)(c) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 37(4)(b)

F11 S. 49(2)(d) inserted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 37(4)(c)

F12 S. 49(3) substituted (1.4.2010) for s. 49(3)-(5) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 254(3) (with Sch. 9 paras. 1-9, 22)

F13 Words in s. 49(6) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 37(5)