EIM23049 - Car benefit – other specific types of vehicle

Section 115(1) ITEPA 2003

Motor homes

HMRC has always considered these vehicles to be cars for tax purposes because

• they are mechanically propelled road vehicles, and
• none of the exceptions in s115(1) ( EIM23020) apply to prevent them being cars.

A decision by the Special Commissioners published in August 2005 has confirmed that this view is correct. The case is that of County Pharmacy Ltd v HMRC and D A H Morris v HMRC, Mr Morris being managing director of the company.

In March 2006, the decision of the Special Commissioner was upheld in the High Court. The judgement will in due course be published in the Tax Cases series, but in the interim can be found at:

• All England Law Reports, [2006] EWHC 1560 (Ch)
• Simon’s Tax Cases, [2006] STC 1593.

Land Rover Defender Station Wagons

HMRC has always considered these vehicles to be cars for tax purposes for the reasons given above, I.e. that

• they are mechanically propelled road vehicles, and
• none of the exceptions in s115(1) ( EIM23020) apply to prevent them being cars.