Finance Act 1991

61 Hiring motor cars

(1) Section 35 of the [1990 c. 1.] Capital Allowances Act 1990 (motor cars) shall be amended as mentioned in subsections (2) and (3) below.

(2) In subsection (2) (reduction of allowance for hiring cars whose retail price when new exceeds £8,000) at the end there shall be inserted the words “; but this subsection shall have effect subject to subsection (3) below.”

(3) The following subsections shall be inserted after subsection (2)—

“(3) Subsection (2) above shall not apply where the hiring is 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 per cent. of the retail price of the motor car when new.

(4) In subsection (3) above “hire-purchase agreement” has the meaning given by section 784(6) of the principal Act.”

(4) This section shall have effect in relation to any chargeable period or its basis period ending on or after the day on which this Act is passed.