Director's Car and Input Tax

Director's Car
Revenue and Customs Commissioners v Elm Milk Ltd: [2006] EWCA Civ
164
CA
3 March 2006
Daily Law Notes Report Summary
The claimant company purchased a motor car for business use by its
sole director, who was required to travel extensively in the
course of his employment.  A claim by the company to deduct input
tax on the purchase of the car was disallowed and the Revenue
appealed.   The prohibition on private use, backed up by the terms
of the director's employment and the arrangement as to the keys of
the vehicle, was sufficient evidence for the tribunal to conclude
that the company had satisfied the condition in article 7(2G) so
as to entitle it to repayment of the tax.