Beneficial cars

The taxpayer and his wife had traded in partnership before forming a limited company.

He liked cars and whenever he wanted to buy one he would instruct his office manager to arrange the paperwork. The finance deals were in the name of the company but as the cars were for private use the directors repaid the amounts through their director loan accounts.

HMRC claimed that the cars were taxable benefits within ITEPA 2003 s 114 and raised assessments as appropriate.

The First-tier Tribunal said the taxpayer received a benefit in having the finance agreements in the company’s name as that way he got a better deal. Section 114 did apply and the assessments were confirmed.

A second matter in dispute was an executive box at Huddersfield Football Club hired by the company....