EIM23020 - Car benefit: meaning of car

Section 115(1) ITEPA 2003

A car is a mechanically propelled road vehicle that is not:

• a goods vehicle (a vehicle of a construction primarily suited for the conveyance of goods or burden of any description).

• This will include most commercial vehicles such as lorries, pick-up trucks or vans. Estate cars will usually count as cars unless they have been permanently and substantially modified to change their construction to one primarily suited for that purpose (see EIM23030 onwards). There is guidance on multi-purpose vehicles at EIM23044 and double cab pick-ups at EIM23045.
• Note that the test is of construction, not use.
• A vehicle that escapes from being a car for car benefit purposes by this route will be treated as a van (see EIM22051 onwards) unless it is large enough to be a heavy goods vehicle (see EIM22300 onwards).

• a vehicle of a type not commonly used as a private vehicle and unsuitable to be so used.

• This will obviously apply to a specialised vehicle, such as a bus. But it may also include outwardly conventional vehicles that have been modified in some way. Further guidance on this point is at EIM23040 onwards.
• The benefit of the use of a vehicle that escapes from being a car for car benefit purposes by this route will be taxed under the general benefit rules on use of an asset (see EIM21615 onwards).

• a motor cycle as defined in Section 185(1) of the Road Traffic Act 1988
• an invalid carriage as defined in Section 185(1) of the Road Traffic Act 1988.

The flowchart at EIM23020a explains how different vehicles are dealt with under various Sections of ITEPA 2003.

EIM23021 is designed to be issued to taxpayers wanting guidance on the difference between cars and vans for tax purposes.