{
  "url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-48",
  "json_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-48.json",
  "legislation": "ukpga/2005/5",
  "legislation_title": "Income Tax (Trading and Other Income) Act 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005",
  "path": "section/48",
  "kind": "section",
  "number": "48",
  "heading": "Car ... hire",
  "text": "(1) This section 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 CO2 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 249 (debts released after cessation),\nis reduced by 15% .\n(4A) In this section “corresponding provision” means—\n(a) section 56(2) of CTA 2009 (car ... hire: trade profits and property income), or\n(b) section 1251(2) of CTA 2009 (car ... hire: expenses of management), including as applied by section 82(4) of FA 2012. ...\n(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 48(1) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in s. 48(2) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(3)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 48(3) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(2) (with Sch. 2 Pts. 1, 2)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 48(4)(a) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(3), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Word in s. 48(4) substituted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 36(4)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "S. 48(4A) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(4) (with Sch. 2 Pts. 1, 2)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 48(4A)(a)(b)(c) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 36(5)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Word in s. 48(4A)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 126(a)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in s. 48(4A)(b) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 126(b)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "S. 48(4A)(c) and word omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 126(c)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "S. 48(5) omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 36(6)"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in s. 48 heading omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 36(7)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2005/5/section/48",
    "retrieved_at": "2026-10-29T09:16:32.370392+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."
}