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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