Van-Lauren G Welds Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 28 February 2011
Neutral citation: [2011] UKFTT 146 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Van-Lauren G Welds Ltd claimed input VAT on a Range Rover purchased for supposed exclusive business use. The Tribunal found that although the company intended business use, it provided the car to its sole director without legal or physical restrictions on private use, so the car was treated as made available for private use and input VAT was disallowed. The appellant’s legitimate-expectation/misdirection complaint against HMRC failed. The appeal was dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
Where a company supplies a car to its director but places no legal or physical impediment on the director’s private use, the car may be treated as made available for private use under article 7(2G) of the VAT (Input Tax) Order 1992; recovery of input VAT on a motor car therefore requires not only an initial intention of exclusive business use but also an absence of any intention to make the car available for private use.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal indicated it need not resolve broader public-law questions about applying legitimate-expectation principles in VAT appeals because the factual basis for such a claim was not established; it also noted that HMRC’s prior publication of a correct Notice (700/64) before purchase undermined any claim of reliance on undocumented contrary oral advice.