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HMRC internal manual

Capital Allowances Manual

Plant and Machinery Allowances (PMA): cars: expenditure incurred before 1 or 6 April 2009 - qualifying hire cars


The rules that apply to expenditure incurred before April 2009 (CA23510) do not apply to qualifying hire cars. A qualifying hire car is a car that is provided wholly or mainly for hire to, or the carriage of, members of the public in the ordinary course of a trade, and satisfies one of these three conditions:

  1. It is not normally hired to, or used for the carriage of, the same person for:
* 30 or more consecutive days, or 
* 90 or more days in total in any 12-month period. 
  Treat connected persons as the same person when you apply this test.  

  Example A car that is hired to Johnny from 10 February to 8 March, his daughter, Roseanne, from 1 April to 27 April, Johnny from 5 May to 31 May and Roseanne again from 1 September to 25 September is not a qualifying hire car. Johnny and Roseanne are connected and between them they have had the car on hire for more than 90 days in a 12-month period.  

  1. It is provided for hire to a person who uses it in such a way that the conditions in 1 are satisfied. Cars that are hired to a limited range of customers, such as employees of persons connected with the owner do not satisfy this condition.
  2. It is a car provided for a disabled person. A car provided for a disabled person is a car provided wholly or mainly for use by people receiving certain types of disability living allowance or a mobility supplement. In more detail, the cars that are in this category are cars provided wholly or mainly for people receiving: 

    * a disability allowance under the Social Security Contributions and Benefits Act 1992 or its Northern Ireland equivalent because of entitlement to the mobility supplement; 
    * a War Pensions mobility supplement; or 
    * a mobility supplement. 
    The emissions based rules that apply in respect of expenditure incurred after April 2009, described in [CA23535](, apply to all cars. CAA01/S82 was omitted from the legislation as a result of the amendments to the rules so the concept of qualifying hire cars ceases to be relevant for capital expenditure incurred on or after 1 or 6 April 2009.