- The Three Shires Trailers case involved a dispute over an input tax claim on the purchase of two Land Rover Discoveries.
- The vehicles were initially commercial vehicles but were converted to cars by adding seats and removing materials from the rear windows.
- The appellant argued that the vehicles were used only for business purposes and not for private use.
- HMRC initially disallowed the claim, stating that the vehicles became cars and were subject to an input tax block.
- The FTT ruled in favor of the appellant, stating that the vehicles were acquired as commercial vehicles and the input tax could be deducted.
- The judge found that the vehicles were intended and used only for business purposes, making them eligible for input VAT recovery.
- No output tax was due on a self-supply.
- This case highlights the difficulty of proving no private use of cars to HMRC.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
