Landrover Defender - car or van?

paulb

Are there any circumstances where a Landrover Defender can be classed as a van rather than a car? This will have big tax implications for my client depending on whether AIAs or CAs can be claimed.

On Accountingweb, Nichola Ross Martin refers to HMR&C and states that they will always class the Defender as a car.

deanshepherd

Is it a commercial variant? e.g. panels instead of windows in rear, rear seats removed..

If not, then you are going to struggle.

HMRC specifically exclude it for BIK purposes here but, as much as they would like it to be, HMRC opinion is not the law!

For CA purposes, you really have to ask is it "primarily suited for transporting goods". On that basis, I would say yes to a commercial variant and no to your standard fully seated, fully windowed model. What use the owner actually makes of the vehicle has no relevance.

T.C.

Surely it does depend on the nature of the business. I know of someone who uses one as a commercial vehicle because it pulls a trailer - he sells firewood.

deanshepherd

Unfortunately not.

I know plenty of people who use their estate cars for commercial purposes but that does not make them vans for tax purposes.

paulb

Thanks for the replies. I have clarified this with my client and the landrover is apparently a truck-cab landrover and the dealer said that this qualifies as a commercial vehicle.

Orry L.Clayton

it depends on the payload per the handbook
also read ITEPA 2003 S.115

Dean

Just to expand on Orry L.Clayton's siting of the tax legislation:

Here is a good thread worth reading. I wouldn't take a dealers' word as gospal!

Regards

Dean

deanshepherd

With regard to the 1 tonne payload point - this is a special rule that only applies to double-cab pick-up trucks.

Bluewednesday

I would echo Dean's comments on dealers wisdom.

One of our client's got very upset as a dealer had told him he could reclaim VAT on his car purchase which meant he brought a more expensive car thinking his VAT claim would cover it!!

peugeot

I can recall a few conversations I have had with clients who say "the dealer told me it is more tax efficient to......" or "the dealer said I can claim......" when in fact what the dealer says is not correct.

My reply to the client is "tell the dealers to stick to selling cars - leave the tax side of things to those who are a bit more clued up on it!!"

Monsoon

The dealer's advice is probably just as good as the man in the pub's.... :laugh: