Nigel Doran (Macfarlanes) examines a recent FTT case that has implications for every sale by an employer company of an asset to an employee on interest free deferred payment terms.
At first glance Exel Computer Systems Plc v HMRC [2018] UKFTT 346 seems to be a case which is of narrow application to the taxation of the benefit of car fuel and only of historic interest in view of recent changes to the ‘fair bargain’ principle and to the deadline for employees ‘making good’ the cost of providing benefits. However on closer examination the case if correctly decided could be of more general application and produce alarming results in employment situations that are not that uncommon.
The facts of Exel Computers
The taxpayer company provided company cars falling within ITEPA 2003 Part 7 Chapter 6 (car benefit...
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Nigel Doran (Macfarlanes) examines a recent FTT case that has implications for every sale by an employer company of an asset to an employee on interest free deferred payment terms.
At first glance Exel Computer Systems Plc v HMRC [2018] UKFTT 346 seems to be a case which is of narrow application to the taxation of the benefit of car fuel and only of historic interest in view of recent changes to the ‘fair bargain’ principle and to the deadline for employees ‘making good’ the cost of providing benefits. However on closer examination the case if correctly decided could be of more general application and produce alarming results in employment situations that are not that uncommon.
The facts of Exel Computers
The taxpayer company provided company cars falling within ITEPA 2003 Part 7 Chapter 6 (car benefit...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
