SCHEDULES
SCHEDULE 11Tax relief for business expenditure on cars and motor cycles
Part 2Restrictions on deductions for hire expenses
Corporation tax
48
1
Section 57 (car or motor cycle hire: supplementary) is amended as follows.
2
In subsection (1)—
a
omit “or motor cycle”,
b
omit “one”,
c
before paragraph (a) insert—
za
a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988),
d
in paragraphs (a) and (b), insert at the beginning “a vehicle”.
3
After that subsection insert—
1A
In section 56—
“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.
4
In subsection (2)—
a
omit “or motor cycle” (in each place),
b
omit paragraph (c), and
c
insert at the end—
d
is leased under a long-funding lease (within the meaning of section 70G of CAA 2001).
5
In subsection (6), omit “and section 56”.
6
In the heading, omit “or motor cycle”.