C & E Commissioners v Elm Milk Ltd

CA [2006] STC 792; [2006] EWCA Civ 164

Elm Milk, a consultancy company that provided its managing director with a car. The decision was to allow the company input tax deduction on the purchase of the car based on the following:

• The director lives 50 yards from the office and had use of another car for private travel
• It was specifically minuted within the company that car could not be used for private use as it would be a breach of the employee’s terms of employment.