Commentary on Sections Overview Overview Section 50: Hiring cars (but not motor cycles) with low carbon dioxide emissions
212.This section excludes cars with low CO2 emissions and electrically propelled cars from the restriction in section 48. It is based on section 578A(2A) and (2B) of ICTA and section 60 of FA 2002.
213.Expenditure incurred on hiring a car first registered before 17 April 2002 does not qualify for relief under this section. See paragraph 17 of Schedule 2 to this Act.
214.Subsection (2) defines “car with low CO2 emissions” and “electrically propelled car” by reference to section 45D of CAA.
215.Section 45D(2) to (6) of CAA defines a car with low CO2 emissions as follows:
“(2)For the purposes of this section a car with low CO2 emissions is a car which satisfies the conditions in subsections (3) and (4).(3)The first condition is that, when the car is first registered, it is so registered on the basis of an EC certificate of conformity, or a UK approval certificate, that specifies—(a)in the case of a car other than a bi-fuel car, a CO2 emissions figure in terms of grams per kilometre driven, or(b)in the case of a bi-fuel car, separate CO2 emissions figures in terms of grams per kilometre driven for different fuels.(4)The second condition is that the applicable CO2 emissions figure in the case of the car does not exceed 120 grams per kilometre driven.(5)For the purposes of subsection (4) the applicable CO2 emissions figure in the case of a car other than a bi-fuel car is—(a)where the EC certificate of conformity or UK approval certificate specifies only one CO2 emissions figure, that figure, and(b)where the certificate specifies more than one CO2 emissions figure, the figure specified as the CO2 emissions (combined) figure.(6)For the purposes of subsection (4) the applicable CO2 emissions figure in the case of a bi-fuel car is—(a)where the EC certificate of conformity or UK approval certificate specifies more than one CO2 emissions figure in relation to each fuel, the lowest CO2 emissions (combined) figure specified, and(b)in any other case, the lowest CO2 figure specified by the certificate.”
216.Section 45D(7) of CAA provides that the amount specified in section 45D(4) may be amended by Treasury order.
217.Section 45D(9) of CAA defines an electrically propelled car as a car which is:
“(a)…propelled solely by electrical power, and(b)that power is derived from—(i)a source external to the vehicle, or(ii)an electrical storage battery which is not connected to any source of power when the vehicle is in motion.”