Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum : Used car?

27 March 2018
Issue: 4641 / Categories: Forum & Feedback

When is a company car unavailable for tax purposes?

My client is in dispute with HMRC over whether a car was available to a director who holds a small minority of the shares in a family-owned company. For many years he has used an expensive car for which the benefit in kind had been properly declared on form PIID and all tax and National Insurance paid. Then the company decided that the tax cost of providing the car was too high and withdrew the benefit.

An agreement was drawn up in writing forbidding the director from using the car. He returned the keys which were put in a safe to which he did not have access. The car was parked permanently outside the director’s home which was in a private estate with security gates. The company did not sell the car until after a SORN notification was made confirming that the vehicle had been taken off the road.

...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon