# Income Tax (Trading and Other Income) Act 2005, Section 48: Car ... hire

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

(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—
(a) a car that is first registered before 1 March 2001,
(b) a car that has low CO2 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 249 (debts released after cessation),
is reduced by 15% .
(4A) In this section “corresponding provision” means—
(a) section 56(2) of CTA 2009 (car ... hire: trade profits and property income), or
(b) section 1251(2) of CTA 2009 (car ... hire: expenses of management), including as applied by section 82(4) of FA 2012. ...
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/48 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-48
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.