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, EIM23450 onwards |
No benefit charge, EIM23450 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.
