56Car F1... hireU.K.

(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 [F2which 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 [F315%].

(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 [F415%].

(5)In this section “corresponding provision” means—

(a)section 1251(2) (car F5... hire: expenses of management), [F6including as applied by section 82(4) of FA 2012, or]

(b)section 48(2) of ITTOIA 2005 (car F7... hire: trade profits and property income), F8...

F8(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .