Availability rather than intent

Farmers in three recent cases have tried to reclaim VAT on cars which they argued were for business purposes only.

In Alex Paton & Son HMRC disallowed the taxpayer’s claim to VAT on a Land Rover Discovery.

The taxpayer appealed to the tribunal on the grounds that the vehicle was used solely for a business purpose and had been especially adapted to allow for the taxpayer’s disability.

The main issue to be addressed however was not one of purpose but of availability. The relevant legislation VAT (Input Tax) Order SI 1992/3222 articles 7(2E)(a) and 7(2G)(b) demand that the vehicle is not only for the purpose of business use only but is also incapable of private use.

Crucially article 7(2G)(b) says:

‘A taxable person shall not be taken to intend...