Road fund licence (road tax)

In Autolease (UK) Ltd [2005] BVC 4,101, the company obtained cars for customers. Each customer was asked whether he wanted a six or 12-month road tax (licence) with the car. The invoice showed the cost of the road tax as a separate item. The company was not able to treat the charge for the road tax as outside the scope of VAT because it bought the cars already taxed. HMRC relied on Depot Corner Car Sales [2001] BVC 4,064, in which the cost of an MOT test was treated as part of the consideration for the supply of a car.

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