VAT P11D Definition of Car-Derived and Combination Vans

Businesses purchasing cars will need to check the status of their vehicles against guidance issued by HM Revenue and Customs (HMRC) to clarify the VAT treatment of car-derived vans along with the P11D definition.

HMRC clarified its interpretation of the definition of a motor car as contained in the Value Added Tax (Cars) Order 1992 to cater for the development of vehicles that blur the distinction between cars and vans. This fact sheet provides clarity on this along with guidance regarding how these vehicles should be treated for P11D purposes.

VAT Definition of Car Derived and Combination Vans (PDF)