Any contractual restraints?

Was a car available for private use?

The taxpayer claimed input tax on a car it had bought in 2015. HMRC refused the claim on the ground it was available for private use. The company director kept the car at his residential address over the Christmas period because there was no secure place to park it at the business premises.

The First-tier Tribunal said it was clear that the vehicle was not intended for private use but the issue was whether the taxpayer had made the car available for use. The judge found there were no legal or physical restrictions to prevent private use by the director or employees of the company.

The taxpayer’s appeal was dismissed.

Neil Warren independent VAT consultant said: ‘This case again highlights the two separate tests that need to be passed for input tax to be claimed on the purchase of a...