Income tax

The Court of Appeal dismissed the Revenue and Customs Commissioners’ appeal concerning whether an employee was liable to income tax in respect of a car leased to him by his employer on arm’s length commercial terms, including lease charges at full market value. The tribunals had been right to have decided that a charge to income tax arose under Ch 6 of Pt 3 of the Income Tax (Earnings and Pensions) Act 2003 only if the terms on which a car was leased to an employee conferred a benefit on the employee in the ordinary sense of that word, and the employees in the present case had received no such benefit.