UKFTT 97 (2010) Antique Buildings Ltd v Revenue & Customs

Class 1A NIC - Taxpayer won

Case Summary:

The company provided a helicopter for its business and the personal use of a director. The director was taxed on the helicopter benefit and was allowed partial deductions for business use.  The charge for personal benefit was not made good.  The issue was whether the deductions for business use were allowable for Class 1A NICs charged on the company.

It was agreed that from 2002 until ITEPA 2003 came into effect that Class 1A NICs were payable on the full amount of the benefit (before the business use deductions) of having the helicopter provided to the Director. 

The First Tier Tribunal held that from 2003 onwards the Class 1A NIC was charged only on the benefit after the business use deductions.