The taxpayer was sole director of a company. The company provided him with a car, and sought to recover the input VAT. The revenue disallowed the claim saying that it could not be shown to have been used exclusively for company business and not for private use.
Held: The taxpayer had a contract with the company which explicitly required it to be used only on company business and to be parked at the company. The keys were kept in the company office. Private use would be a breach of the director’s contract of employment. In these circumstances the company had done enough to show an intention that it be used exclusively on company business, and the company was able to reclaim the input tax.
Lord Justice Ward Lady Justice Arden Lord Justice Moore-Bick
Times 20-Mar-2006,  EWCA Civ 164
England and Wales
At VDT – Elm Milk Ltd v Customs and Excise VDT 16-Apr-2004
Appeal from – Commissioners of Customs and Excise v Elm Milk Ltd ChD 3-Feb-2005
The taxpayer, was sole director of a company. The company provided him with a car, and sought to recover the input VAT. . .
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Updated: 05 July 2022; Ref: scu.239838