SE23042 - Car benefits: meaning of "unsuitable for use as a private vehicle"

Section 168(5)(a)(ii) ICTA 1988

The guidance on this page explains how to apply the third stage of the test outlined atSE23040, that is

• whether that type of vehicle is one that is unsuitable for use as a private vehicle

Remember, as the whole of the test at SE23040 has to be satisfied in order for a vehicle to fall outside the definition of "car", a vehicle which is of a "type" not commonly used as a private vehicle will still count as a "car" unless

• it is unsuitable for use as a private vehicle, or
• it falls in one of the other excluded categories in SE23020.

The words "unsuitable for use as a private vehicle" should be taken to mean unsuitable for use by members of the public generally. So, with the regard to any vehicle under consideration, the key question to pose is "what are the features of this vehicle which make it unsuitable to be used privately?

One example of a feature that will make a vehicle unsuitable to be used privately is the fact that it is of a "type" that ordinary members of the public are legally barred from driving - see SE23043.

If a vehicle is not a ‘car’ for this reason, you should consider whether the benefit can be taxed under the residual benefits legislation, starting at Section 201 ITEPA 2003