Part 2Trading income

Chapter 4Trade profits: rules restricting deductions

Car or motor cycle hire

49Car F11... hire: supplementary

1

In section 48 “car F2...” means a mechanically propelled road vehicle other than F3...—

F4za

a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988),

a

F5a vehicle of a construction primarily suited for the conveyance of goods or burden of any description, or

b

F6a vehicle of a type not commonly used as a private vehicle and unsuitable for such use.

F11A

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 F7...” means a car F7... which—

a

is hired under a hire-purchase agreement F12... 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 F7... when new, or

F9c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8d

is leased under a long-funding lease (within the meaning of section 70G of CAA 2001).

F133

For this purpose “hire-purchase agreement” has the meaning given by section 998A of ITA 2007.

6

In this section F10... “new” means unused and not second-hand.