Income Tax (Trading and Other Income) Act 2005 section 49

Car hire: supplementary

Section 49 provides the key definitions used in section 48's rules on restricting deductions for car hire costs, including what counts as a "car", a "qualifying hire car", and terms relating to low emissions and electric vehicles.

• A "car" is any mechanically propelled road vehicle except motorcycles, goods vehicles, and vehicles not commonly used or suitable for private use
• A "qualifying hire car" is one hired under a hire-purchase agreement with no purchase option, or with a nominal purchase option of no more than 1% of the new retail price, or one leased under a long-funding lease
• The terms "a car that has low CO₂ emissions" and "electrically propelled" take their meanings from the Capital Allowances Act 2001
• "New" means unused and not second-hand, and "hire-purchase agreement" takes its meaning from section 998A of the Income Tax Act 2007