Paragraph 62

Section 578A (rules restricting deductions: car or motor cycle hire) is amended as follows.

In subsection (2), for paragraphs (a) and (b) substitute

“which is not—

(a)

a car that is first registered before 1 March 2001,

(b)

a car that has low CO₂ emissions (as defined in section 104AA of the Capital Allowances Act),

(c)

a car that is electrically propelled (as defined in section 268B of that Act), or

(d)

a qualifying hire car.”

Omit subsections (2A) and (2B).

After subsection (2B) insert—

“(2C)

This section does not apply to the hiring of a car where condition A or condition B in section 58A of CTA 2009 (short-term hiring in and long-term hiring out) is met.”

In subsection (3), for the words from “multiplying” to the end substitute “ 15% ”.

In subsection (4), for “multiplying it by the fraction in subsection (3) above” substitute “ 15% ”.

After that subsection insert—

“(5)

For the purposes of section 50B of ITTOIA 2005 (connected persons: application of restrictions), this section is to be treated as if it were part of section 48 of that Act.”