Heavy goods vehicles

Produced by Tolley in association with

Employment Tax

Guidance

Introduction

Heavy goods vehicles (HGVs) are an unusual benefit. Unless a very specific set of circumstances arise, then the provision of an HGV to employees will not give rise to a taxable benefit.

What is an HGV?

The legislation defines an HGV as a mechanically propelled road vehicle which is primarily designed for the carriage of goods or burden of any kind designed to have a laden weight in excess of 3,500 kilograms. Notably, a passenger bus is not an HGV (because humans are not classified as a burden of any kind), and so a passenger bus is outside the scope of the exemption described below.

Exemption from tax

Where an HGV is provided to an employee (or member of their family), no taxable benefit arises as long as two conditions are met:

•
the employee’s use of the vehicle is not wholly or mainly for private use
•
there is no transfer of property to the employee

Under these rules, the employee can enjoy a greater degree of private use of an

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company

Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties. Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

Popular Articles

Trusts and Inheritance Tax

Gifts out of surplus income

Gifts out of surplus incomeA valuable exemption from inheritance tax (IHT) applies to gifts out of surplus income. This exemption applies only to lifetime gifts and is therefore a key part of lifetime planning. The exemption applies to both outright gifts and gifts into trust. Gifts which meet the

14 Jul 2020 11:48 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more

Class 1 v Class 1A

Class 1 v Class 1AClass 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met

Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more

UU��ֱ��