‘The issue in the appeal is as to the true construction of section 35(2) in Chapter III of Part II of the Capital Allowances Act 1990 . . Section 35(2) restricts the extent to which expenditure on the ‘hiring’ of an ‘expensive motor car’ (that is to say, a car the retail price of which when new exceeds a specified sum, currently pounds 12,000) is deductible in computing the profits of a trade for tax purposes. The issue is whether (as Britax contends) ‘hiring’ in the context of section 35(2) is limited to contracts of hire under which the hirer is the end-user, in the sense that he (or, in the case of a company, its servants or agents) enjoys the physical use of the car: or whether (as the Revenue contends) it applies to all contracts of hire, whether or not the hirer may in turn have entered into a contract of sub-hire to a third party end-user.’
Judges:
Lord Justice Jonathan Parker
Citations:
[2002] EWCA Civ 806, [2002] STC 956
Links:
Jurisdiction:
England and Wales
Corporation Tax
Updated: 24 August 2022; Ref: scu.172273
