Children up and down the land are looking forward to the most exciting day of the year where Santa delivers their presents, but poor old Father Christmas likely faces significant tax charges on his sleigh despite his honourable intentions.
For BIK purposes, a 'car' is defined as any mechanically propelled road vehicle which is not a goods vehicle, van under 3,500kg, motorcycle or ambulance. HMRC guidance is clear that simply because sleighs are rare vehicles in the UK, it does not prevent them from being considered cars for tax purposes.
Worse still for Santa's case is that the vehicle is clearly well suited to carrying elves and the carriage of passengers is a hallmark of a car.
Father Christmas would be wise to be cautious with this approach, as the last thing he would want is HMRC classifying the sleigh as a private aircraft, which can have even more punitive tax charges.
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