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

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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.

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