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Private use not incidental

20 July 2012
Issue: 4363 / Categories: Tax cases , Business , Income Tax
Time for Group Ltd (TC1909)

The taxpayer company owned various company cars each of which was provided with company fuel.

HMRC said the vehicles were provided to the owners of the company married couple for private use and charged the firm class 1A National Insurance on the benefit.

The taxpayer argued the cars were pooled and used only for business travel on the basisof which under ITEPA 2003 s 167 and s 168 no taxable benefit arose.

The First-tier Tribunal agreed that s 167(3)'s conditions (a) and (c) were fulfilled. The veh were made available to and used by employees of the company. The problem came with (d) private use of the vehicle.

While the cars were used for business the owners often used them to attend events at their children’s schools as well as other occasions.

The tribunal was not convinced the private use...

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