EIM22705 - Van benefit from 2005/06: transition to the new regime (table)
Sections 114 and 154 ITEPA 2003
Finance Act 2004 changed the van benefits regime with effect
from 2005/06. However, the government decided to stagger the
transition so that the new regime did not come into full effect
until 2007/08 with some elements of the old regime remaining in
place until 2006/07.
In order to minimise confusion, the table below summarises
the changes and includes hyperlinks to guidance on the new regime
only.
Description |
Previous regime: years to 2004/05 |
Transitional years: (2005/06 & 2006/07) |
New regime: years from 2007/08 |
| Private use (all kinds) | £500 (£350 if van is 4 years old) | n/a | n/a |
| Private use: restricted private use condition ( EIM22795) met | n/a | Nil,
EIM22790
| Nil,
EIM22790
|
| Private use: all other | n/a | £500 (£350 if van is 4 years old); EIM22790 | £3000, EIM22790 |
| Reduction for unavailability | Yes | Yes, EIM22820 | Yes, EIM22820 |
| Shared vans | Separate rules | Just & reasonable, EIM22830 | Just & reasonable, EIM22830 |
| Reduction for payments for private use | Shared and exclusive vans separate | From benefit charge for each van, EIM22840 | From benefit charge for each van, EIM22840 |
| Replacement vans rules | No | Yes, EIM22850 | Yes, EIM22850 |
| Effect of insignificant private use | Full charge | No benefit charge, EIM22745 | No benefit charge, EIM22745 |
| Pooled vans | No benefit charge | No benefit charge, EIM23800 onwards | No benefit charge, EIM23800 onwards |
| Van fuel benefit charge (all vans) | No | n/a | n/a |
| Van fuel benefit charge (restricted private use condition met) | n/a | n/a | n/a |
| Van fuel benefit charge (restricted private use condition not met) | n/a | Yes, EIM22900 (charge nil, so ignore in practice) | Yes, EIM22900 |
There is a summary of the new regime in the table at EIM22702.
Years to 2004/05
Full guidance on van benefit for these years can be found using the contents page at EIM22050.
