380 Provisions supplementary to sections 374 to 379

(1) Excluded from the application of this Part are public hire businesses which purchase or hire cars in the ordinary course of their trade (for example, taxi businesses or car hire firms).

(2) Also similarly excluded are cars used for testing purposes. A manufacturer of cars, car parts or accessories gets unrestricted allowances if the car is provided solely for the purpose of testing either the car itself or car parts and accessories. However, if within 5 years of purchase the car is used to any substantial extent for non-testing purposes, the exemption is withdrawn. This is to prevent full allowances being given for a car which is bought ostensibly for testing purposes and diverted to ordinary use after a short period, or for a car which is used for ordinary travel as well as for testing.

(3) The machinery for adjusting tax assessments for past years where necessary under sections 378, 379 and subsection (2) is provided for.

Relevant Date: Finance Act 2019