Section 48 Car ... hireF12

United Kingdom

(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 F1which 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 F215%.

(3)

Subsection (4) applies if F3a 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 F4..., or

(b)

is treated as a post-cessation receipt under section 249 (debts released after cessation),

is reduced by F515% .

F6(4A)

In this section “corresponding provision” means—

(a)

section 56(2) of CTA 2009 (car F7... hire: trade profits and property income), F8 or

(b)

section 1251(2) of CTA 2009 (car ... hire: expenses of management), F9 including as applied by section 82(4) of FA 2012. F10...

(c)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: 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)
F2: 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)
F3: 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)
F4: Words in s. 48(4)(a) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 589(3), Sch. 3 Pt. 1 (with Sch. 2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)
F5: 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)
F6: 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)
F7: 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)
F8: Word in s. 48(4A)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 126(a)
F9: Words in s. 48(4A)(b) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 126(b)
F10: S. 48(4A)(c) and word omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 126(c)
F11: 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)
F12: 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)