Providing a company car to an employee is treated as a taxable benefit but there is an exemption to the general rule where the car provided by the employer is used as a "pool car". The exemption only applies if the pool car is not normally kept overnight at the home or private premises of any employee, unless it can be demonstrated that the premises where the pool car are kept are also occupied by the employer.
In Yum Yum Limited v HMRC, the tribunal considered the definition of "occupied" in these circumstances. It concluded that a person or organisation "occupies" premises where they physically possess them, control them, have the power to exclude other people from the premises and have some right of enjoyment to the premises. In this case, the pool car was parked overnight at the company director's house. The tribunal found that, whilst the director himself occupied the premises, the company did not physically posses or control the director's house. As such, the pool car exemption did not apply.