EIM22870 - Van benefit from 2005/06: examples - the basic cases
Section 155 ITEPA 2003
This page illustrates the principles of the basic cases at EIM22790.
Example: van for which the restricted private use condition is met
In this example, a van is made available to employee A because
it is necessary for the job. The van can be and is taken home at
night but the terms on which it is made available do not allow any
other private use. Employee A abides by those terms (for full
details of the restricted private use condition, see
EIM22795).
Conclusion: the cash equivalent for 2005/06 is nil (
EIM22790).
Example: van for which the restricted private use condition is NOT met
Employee B also needs a van for their job, but is allowed both
to take it home and to use it for any other private purpose. The
van is less than 4 years old and employee B regularly uses it for
private purposes other than commuting.
Conclusion: the cash equivalent for 2005/06 is £500 (
EIM22790).
