Three Shires Trailers Limited v The Commissioners for HMRC

Three Shires Trailers Limited v The Commissioners for HMRC

The vehicles, after conversion, were qualifying cars as they were intended for and used solely for business purposes, and had not previously been subject to an input tax block. Therefore, no self-supply occurred and no output tax is due.

Parties
Appellant: Three Shires Trailers Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Tax Appeal / Judgment After Remote Video Hearing
Outcome
Appeal allowed
Legal Topics
Value Added Tax, Self Supply, Commercial Vehicles, Motor Car Conversion, Input Tax Recovery
Tax Law Value Added Tax Self Supply Commercial Vehicles Motor Car Conversion Input Tax Recovery

Case Brief

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Parties

Three Shires Trailers Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Judgment After Remote Video Hearing

Legal Issues

  1. 1 Whether the conversion of commercial vehicles to cars triggered a self-supply charge to output tax under Article 5 of the Value Added Tax (Cars) Order 1992
  2. 2 Whether the vehicles post-conversion were qualifying or non-qualifying cars for VAT purposes
  3. 3 Whether the Appellant was entitled to recover input tax and liable for output tax

Ratio Decidendi

The vehicles, after conversion, were qualifying cars as they were intended for and used solely for business purposes, and had not previously been subject to an input tax block. Therefore, no self-supply occurred and no output tax is due.

Court Disposition

Appeal allowed

Orders

  • The vehicles were qualifying cars and no output tax is due by reference to the conversion.
  • The Appellant is entitled to recover its input tax on the vehicles.