CIRD12620 - Core computational rules: deductible debits: general matters and adjustments for tax purposes: disallowance of expenditure: cars costing more than £12,000

FA02/SCH29/PARA112 (2)(c)

The rules in ICTA88/S578A disallowing a proportion of the hire charges on cars costing more than £12,000 apply equally to debits that would otherwise be deductible under Schedule 29. The guidance in BIM47715 and BIM47717 should therefore be applied in identifying the proportion of the charges that do not give rise to a deductible debit within Schedule 29.

This rule may be in point where for example, cars are hired for the use of company staff in a department responsible for its intangible assets and the hire charges therefore fall within CIRD12250 (expenditure on the maintenance, enhancement etc of intangible fixed assets).