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—

(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 15%.

(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 249 (debts released after cessation),

is reduced by 15% .

(4A)In this section “corresponding provision” means—

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

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

(c)Repealed

(5)Repealed