No effective prohibition of the private use of company cars was held to be in place, and there had been private use of the cars by the taxpayers.
The appellants (husband and wife) were director and employee respectively of a company that carried on its business from a barn at their home address. Seven different cars, all of which were owned by the company, were used by the appellants and other employees of the company at various times.
HM Revenue and Customs (HMRC) raised discovery assessments on the appellants in respect of the private use of cars, and related car fuel benefits, for the tax years 2003/04 to 2006/07 inclusive. The appellants appealed.
The First-tier Tribunal (FTT) had to consider whether any of the cars were available for the appellants’ private use by reason of their employment; whether the appellants were prohibited from using the cars for
