The appellant company was run by two directors, Mr Bradley and Ms Eckersall. The appeal was against HMRC’s decision to disallow input tax recovery of £7,833.34 on the purchase of a Mercedes car on the basis that it was available for private use.
The grounds of appeal were that restrictions on use of the Vehicle implemented by the appellant were sufficient to establish that the appellant did not intend to make it available for private use.
In the case of Commissioners of Customs & Excise v Elm Milk Ltd [2006] EWCA Civ 164 the company purchased a Mercedes car and claimed that it was intended to be used exclusively for the purposes of its farming business. The company passed a board resolution stating that the vehicle was to be used for business purposes only, that the company did not intend to make it available for private use and that any private use would be a breach of an employee’s terms of employment.<>
