Vehicles' primary suitability

The appeal concerned vehicles supplied by Coca-Cola to its employees. Until 1997 the company provided estate cars but then it decided the employees needed vans because they had to carry more and heavier equipment than before.

The taxpayers claimed these were goods vehicles within ITEPA 2003 s 115(2). HMRC disagreed saying they should be subject to the company car rules. The First-tier Tribunal decided the Volkswagen Transporter Kombis were cars but the Vauxhall Vivaros were vans. Both types of vehicles have two rows of seats and a payload of more than one tonne. The tribunal said the Vivaros should be classed as vans because of the significant cargo space available in the middle section. However the Kombis were equally suitable for carrying goods and passengers so did not constitute goods vehicles.

The Upper Tribunal upheld the decision. Both parties appealed.

Lady Justice Asplin agreed with much of the previous...