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”.