PART XIII MISCELLANEOUS SPECIAL PROVISIONS
C1CHAPTER VI OTHER PROVISIONS
Miscellaneous
F1578A Expenditure on car hire
1
This section provides for a reduction in the amounts—
a
allowable as deductions in computing profits chargeable to tax under Case I or II of Schedule D,
b
which can be included as expenses of management of an investment company (as defined by section 130), or
c
allowable as deductions from emoluments chargeable to tax under Schedule E,
for expenditure on the hiring of a car to which this section applies.
2
This section applies to the hiring of a car—
a
which is not a qualifying hire car, and
b
the retail price of which when new exceeds £12,000.
“Car” and “qualifying hire car” are defined by section 578B.
3
The amount which would, apart from this section, be allowable or capable of being included must be reduced by multiplying it by the fraction—
where P is the retail price of the car when new.
4
If an amount has been reduced under subsection (3) and subsequently—
a
there is a rebate (however described) of the rentals, or
b
there occurs in connection with the rentals a transaction that falls within section 94 (debts deducted and subsequently released),
the amount otherwise taxable in respect of the rebate or transaction must be reduced by multiplying it by the fraction in subsection (3) above.
Pt 13 Ch. 6: ss. 573, 575 and 576 transposed to Pt. 13 Ch. 5A (6.4.2007 with effect in accordance with s. 1034(1) of the affecting Act) by Income Tax Act 2007 (c. 3), Sch. 1 paras. 117(3), 119(7), 120(7) (with Sch. 2)