This example demonstrates how to calculate the van benefit charge where there are both shared vans (see EIM22070) and exclusive use vans (see EIM22072).
X Ltd has three vans in 2003/04, all aged under four years on 5
April 2004.
One is available at all times to director A and employee B
both for business and for private use.
The other two are available at all times to director A and
his wife Mrs A, who is not an employee.
No contributions are made for private use and there is no
claim for the alternative calculation (see
EIM22097).
The van used by A and B is in this category. The value of shared availability (see EIM22090) is calculated as follows:
| Step 1 | There is only one van involved. |
| Step 2 | Director A and employee B are participating employees. |
| Step 3 | There are 2 participating employees. |
| Step 4 | Age of the van is less than 4 years. |
| Its interim value is £500. | |
| There are no excluded days, so its basic value is £500. | |
| Step 5 | Reckonable amount = £500/2 = £250. |
| Step 6 | The reckonable amount is less than £500, so the provisional sum is £250. |
| Step 7 | No payments for private use, so no adjustment. |
| The value of shared availability is £250. |
The other two vans are in this category because they are available exclusively to A and a member of his family or household (Mrs A) for the whole year. The value of exclusive availability for each van (see EIM22080) is therefore £500.
A is chargeable on £1,250, which is made up of:
B is chargeable on £250 (value of shared availability
only).
There is a more complex example at
EIM22107.
Full guidance on van benefit for these years can be found using the contents page at EIM22700.
