C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

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

section 1251(2) (car F2... hire: expenses of management), F8including as applied by section 82(4) of FA 2012, or

b

section 48(2) of ITTOIA 2005 (car F3... hire: trade profits and property income), F6...

F6c

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

F76

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