# Corporation Tax Act 2009, Section 56: Car ... hire

Extent: E+W+S+N.I.

(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——
(a) a car that is first registered before 1 March 2001,
(b) a car that has low CO 2 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 15%.
(3) Subsection (4) applies if 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, or
(b) is treated as a post-cessation receipt under section 193 (debts released after cessation),
is reduced by 15%.
(5) In this section “corresponding provision” means—
(a) section 1251(2) (car ... hire: expenses of management), including as applied by section 82(4) of FA 2012, or
(b) section 48(2) of ITTOIA 2005 (car ... hire: trade profits and property income), ...
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Source: https://www.legislation.gov.uk/ukpga/2009/4/section/56 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2009/section-56
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.