Wholly and exclusively

Most dentists will have claimed motor expenses as a routine deduction in their tax returns over the years, but the recent tax tribunal case of Samadian v HMRC provides a salutary lesson as to the size of the hurdle that has to be overcome in getting tax relief for motor expenses. The issue of deductibility of expenses centres on the words “wholly and exclusively” and in the context of this article I would like to focus on just how difficult an obstacle these words represent in providing dentists with tax relief on their motor expenses.

Background information

The recent tax case of Samadian is particularly relevant. The panel also provided some very useful commentary on recent case law. Dr Samadian was a consultant geriatrician with a thriving private practice that he operated in conjunction with his full time NHS employment. As with many consultants, he saw his patients on a sessional basis at the out-patient consulting rooms at two local private hospitals. The rooms were shared with other consultants and were not for his exclusive use. No administrative support was supplied by the private hospital which was all provided at his home/office (his office which was maintained at home). All the patient records and business records were maintained at home and it was undoubtedly the case that the home/office was the centre from which he provided the administrative support for his practice as all correspondence with patients and insurers was actioned from there.