A client is looking to purchase a new Land Rover Discovery Commercial (2 seats) and it will be sent straight from the production line to an approved modification centre to add a second row of seats that fold up to provide the bulkhead.
VAT recoverable as a van?
AIA applies as a van?
Qualifies for van BIKs?
HMRC’s list indicates that Discovery Commercials are usually vans for VAT but it’s not up to date for this specific model.
https://www.accountingweb.co.uk/any-answers/hmrc-carvan-argument SK says the following regarding the conversion:
The fitting of removable rear seats doesn't alter the fact that the vehicle is of a construction primarily suited to the carrying of goods or burden.
This was held to be the case in the FTT case of Jones, where HMRC successfully argued that the installation of (difficult to remove) shelving in a Land Rover Discovery over the seats wasn't sufficient to alter the fact that the vehicle wasn't of a construction primarily suited to the carrying of goods or burden.
The added shelving meant it was able to, and was as a matter of fact, so used, but the purpose for which the construction of the vehicle was primarily suited was unchanged.