Income Tax (Trading and Other Income) Act 2005

48 Car F1 ... hire U.K.

(1) This section applies if, in calculating the profits of a trade, a deduction is allowed for expenses incurred on the hiring of a car [F2 which is not—

(a) a car that is first registered before 1 March 2001,

(b) a car that has low CO₂ emissions,

(c) a car that is electrically propelled, or

(d) a qualifying hire car.]

(2) The amount of the deduction which would otherwise be allowable is reduced by [F3 15%].

(3) Subsection (4) applies if [F4 a deduction is reduced as a result of subsection (2), or a corresponding provision,] and subsequently—

(a) there is a rebate (however described) of the hire charges, or

(b) a debt in respect of any of the hire charges is released otherwise than as part of a statutory insolvency arrangement.

(4) The amount that, as a result of the rebate or release—

(a) is brought into account as a receipt of the trade F5 ..., or

(b) is treated as a post-cessation receipt under section 249 (debts released after cessation),

is reduced by [F6 15%] .

[F7 (4A) In this section “corresponding provision” means—

(a) section 56(2) of CTA 2009 (car F8 ... hire: trade profits and property income), [F9 or ]

(b) section 1251(2) of CTA 2009 (car F8 ... hire: expenses of management), [F10 including as applied by section 82(4) of FA 2012. ]F11 ...

F11 (c)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 48 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. 36(7)

F2 Words in s. 48(1) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(2)

F3 Word in s. 48(2) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(3)

F4 Words in s. 48(3) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(2) (with Sch. 2 Pts. 1, 2)

F5 Words in s. 48(4)(a) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(3), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F6 Word in s. 48(4) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(4)

F7 S. 48(4A) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(4) (with Sch. 2 Pts. 1, 2)

F8 Words in s. 48(4A)(a)(b)(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. 36(5)

F9 Word in s. 48(4A)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 126(a)

F10 Words in s. 48(4A)(b) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 126(b)

F11 S. 48(4A)(c) and word omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 126(c)

F12 S. 48(5) 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. 36(6)