SE23020 - Car benefits: meaning of car

Section 168(5)(a) ICTA 1988

A "car" is any mechanically propelled road vehicle except

• vehicles 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 SE23030 onwards). There is guidance on multi-purpose vehicles at SE23044 and double cab pick-ups at SE23045.
• 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 SE22051 onwards) unless it is a heavier commercial vehicle (see SE22300 onwards).

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

• This will obviously apply to specialised vehicles 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 SE23040 onwards.
• The benefit of 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 SE21615 onwards).

• motorcycles as defined in Section 190(4) of the Road Traffic Act 1972
• invalid carriages as defined in Section 190(5) of the Road Traffic Act 1972.

The following flowchart explains how different vehicles are dealt with under various sections of ICTA88.

SE23021 is designed to be issued to taxpayers wanting guidance on the difference between cars and vans for tax purposes.