C1Part 3Trading income
Chapter 4Trade profits: rules restricting deductions
56Car F9... hire
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 F1which 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 F415%.
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 F515%.
5
In this section “corresponding provision” means—
a
F6c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F76
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)