S48, S49 Income Tax (Trading and Other Income) Act 2005, S56, S57 Corporation Tax Act 2009

This guidance applies to expenditure incurred on hiring cars where the hire period begins on or after 1 April 2009 for Corporation Tax purposes and 6 April 2009 for Income Tax purposes. See BIM47775 for the election to apply the previous rules where the hire period begins on or after 1/6 April 2009 but before 1/6 April 2010.

What types of cars are affected?

The restriction on the deduction of expenses incurred in hiring a car generally applies to cars with CO2 emissions over 160g/km (the threshold for special rate pool expenditure in the capital allowances regime).

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