EIM22872 - Van benefit from 2005/06: example - unavailability
Section 156 ITEPA 2003
This example illustrates the principles at
EIM22820.
On 6 May 2007 X Ltd buys a van and makes it available to an
employee who is not in excluded employment. For the purposes of
calculating the van benefit charge under
EIM22790, the restricted private use
condition (
EIM22795) is not met.
On 30 November the van breaks down and is taken to a garage
for repair. The repairs are completed on 13 January and the
employee collects the van that day. It remains available to the
employee for the rest of the year and is never made available to
any other employee.
Calculation
| Value of unrestricted use for the whole of 2007/08 | A | £3,000 | |
| The van is unavailable from 6 April to 5 May | 30 days | ||
| and from 1 December to 12 January inclusive | 43 days | ||
| Total days unavailable in 2007/08 | 73 days | ||
| Reduction for unavailability: £3,000 x 73/days in 2007/08 (366) | B | £ 599 | |
| Van benefit charge for this van | A - B | £2,401 |
Other examples
- the basic cases, EIM22870
- shared vans, EIM22874
- payments for private use, EIM22876
- replacement vans, EIM22878
- insignificant private use, EIM22880.
