{
  "url": "https://openlegislation.uk/corporation-tax-act-2009/section-56",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2009/section-56.json",
  "legislation": "ukpga/2009/4",
  "legislation_title": "Corporation Tax Act 2009",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2009",
  "path": "section/56",
  "kind": "section",
  "number": "56",
  "heading": "Car ... hire",
  "text": "(1) Subsection (2) applies if, in calculating the profits of a trade, a deduction is allowed for expenses incurred on the hiring of a car which is not——\n(a) a car that is first registered before 1 March 2001,\n(b) a car that has low CO 2 emissions,\n(c) a car that is electrically propelled, or\n(d) a qualifying hire car.\n(2) The amount of the deduction which would otherwise be allowable is reduced by 15%.\n(3) Subsection (4) applies if a deduction is reduced as a result of subsection (2), or a corresponding provision, and subsequently—\n(a) there is a rebate (however described) of the hire charges, or\n(b) a debt in respect of any of the hire charges is released otherwise than as part of a statutory insolvency arrangement.\n(4) The amount that, as a result of the rebate or release—\n(a) is brought into account as a receipt of the trade, or\n(b) is treated as a post-cessation receipt under section 193 (debts released after cessation),\nis reduced by 15%.\n(5) In this section “corresponding provision” means—\n(a) section 1251(2) (car ... hire: expenses of management), including as applied by section 82(4) of FA 2012, or\n(b) section 48(2) of ITTOIA 2005 (car ... hire: trade profits and property income), ...\n(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 56(1) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 11 para. 47(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in s. 56(2) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 11 para. 47(3)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in s. 56(4) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 11 para. 47(4)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 56(5)(a) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the commencing Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 47(5)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 56(5)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 143(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 56(5)(b) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the commencing Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 47(5)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "S. 56(5)(c) and the word immediately preceding it omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 143(b)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "S. 56(6) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the commencing Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 47(6)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in s. 56 heading omitted (with effect in accordance with Sch. 11 paras. 65-67 of the commencing Act) ) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 47(7)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2009/4/section/56",
    "retrieved_at": "2026-10-29T09:11:19.560467+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}