Pool or company car?

Y was the sole director of the appellant company a restaurant in Wandsworth. It was decided that the company should acquire a car and a 1997 Jaguar XJ Sport was bought for around £14 000. Its original list price was more than £38 000.

The car was used on company business and also to transport staff. It was insured for use by Y and his wife for social and domestic purposes as well as in connection with the business. No one else was insured to drive it.

The car was kept at Y’s home overnight. It was claimed that the car was used only in connection with company business and that it met all the conditions to qualify as a pool car (ITEPA 2003 s 167).

HMRC claimed however that the car was a company benefit to Y and...