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Car or van?

31 July 2012
Issue: 4364 / Categories: Tax cases , Employees , Income Tax
T Jones (TC1958)

The taxpayer was employed by Mondial Assistance UK which provided roadside assistance services under contract to Jaguar Land Rover until 2009.

When the contract was re-tendered he transferred to the new provider the AA under the Transfer of Undertakings (Protection of Employment) Regulations 2006.

Both businesses provided the taxpayer with a modified Land Rover Discovery with racking in the boot and extra lighting and electrics although there was ‘no fundamental alteration to the structure’.

The vehicle provided by the AA contained additional tool boxes fitted over the rear seats which the taxpayer was not permitted to remove.

The Land Rover was available for the taxpayer’s private use. Upon transfer from Mondial to the AA the benefit arising on use of the vehicle changed from being taxed as a van to use of a car increasing his tax liability. It was...

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