Definition of company car

The decision in Paul Harrison Lee Solway and Harrison Solway Logistics Limited (TC6956) is a reminder of the complexity of the company car benefit in kind legislation and the fact that this does not mirror the general benefit in kind rules. The judgment can be read in full at tinyurl.com/y5xxcnds.

The leasing arrangement

The question in the Harrison and Solway case was whether two directors should be assessed to a benefit in kind on a company car and fuel. The directors had leased vehicles from major leasing companies in the name of the company. However they had reimbursed the company for the lease and fuel costs through their director loan accounts. It was argued therefore that because the costs had been made good by the directors and irrespective of the lease being in the company name no benefit in kind should arise. It was...