Who provides the benefit?

Relatives DJ and PD were directors of a timber and builders’ merchants company.

They were partners in Cooper Management Services along with DJ’s wife S and his son N. The business provided administrative services to the timber company. The partnership provided cars to all the partners.

HMRC said the vehicles and fuel were made available to each individual by dint of DJ and PD’s positions as directors of the company.

The Revenue assessed each individual to tax on the benefit although the department subsequently acknowledged that a liability to tax and National Insurance on the benefits received by S and N would fall on DJ should one exist.

The individual taxpayers they were provided with cars by reason of their being partners in the partnership. The First-tier Tribunal found the vehicles were owned by the partnership not the company.

But the partnership’s sole...