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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:

1. •

   the employee’s use of the vehicle is not wholly or mainly for private use

2. •

   there is no transfer of property to the employee

Under these rules, the employee can enjoy a greater degree of private use of an