Section 57 — Corporation Tax Act 2009: Car ... hire: supplementary

Car ... hire: supplementary 57 1 In section 56 “ car ” means a mechanically propelled road vehicle other than ... ...—

za a motor cycle (within the meaning of section 185(1) of the Road Traffic Act 1988), a a vehicle of a construction primarily suited for the conveyance of goods or burden of any description, or b a vehicle of a type not commonly used as a private vehicle and unsuitable for such use. 1A In section 56— “ a car that has low CO2 emissions ” has the same meaning as in section 104AA of CAA 2001 (special rate expenditure: main rate car); “ electrically propelled ” has the meaning given in section 268B of that Act.

2 In section 56 “ a qualifying hire car ” means a car ... ... which—

a is hired under a hire-purchase agreement ... under which there is no option to purchase, b is hired under a hire-purchase agreement under which there is an option to purchase exercisable on the payment of a sum equal to not more than 1% of the retail price of the car ... when new, or c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d is leased under a long-funding lease (within the meaning of section 70G of CAA 2001).

3 For this purpose “ hire-purchase agreement ” has the meaning given by section 1129 of CTA 2010.

6 In this section ... “ new ” means unused and not second-hand.