Section 48 | Car ... hire

(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—^F1

(a)a car that is first registered before 1 March 2001,^F1

(b)a car that has low CO2 emissions,^F1

(c)a car that is electrically propelled, or^F1

(d)a qualifying hire car.^F1

(2)The amount of the deduction which would otherwise be allowable is reduced by 15%.^F2

(3)Subsection (4) applies if a deduction is reduced as a result of subsection (2), or a corresponding provision, and subsequently—^F3

(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—^F4

(a)is brought into account as a receipt of the trade ..., or^F5

(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—^F6

(a)section 56(2) of CTA 2009 (car ... hire: trade profits and property income), or^F6F7F8

(b)section 1251(2) of CTA 2009 (car ... hire: expenses of management), including as applied by section 82(4) of FA 2012. ...^F6F7F9F10

(c)Repealed^F10F6

(5)Repealed^F11