EIM22876 - Van benefit from 2005/06: example - payments for private use
Section 158 ITEPA 2003
This example illustrates the principles at
EIM22840. The rates of charge are shown
at
EIM22790.
An employee uses two vans, for which the benefit charges
(after reductions for sharing) are £2,250 and £750. In
addition, the employee pays £1,000 pa for the private use of
each van (i.e. £2,000 in all); the payments qualify for
deduction under EIM22840.
Van benefit calculation
| Van 1 | Van 2 | |
| Benefit charges | £2,250 | £ 750 |
| Payments for private use | £1,000 | £1,000 |
| Net benefit charge | £1,250 | £ nil |
Note that there is no additional relief available, either here or elsewhere, for the £250 by which payments for Van 2 exceed the benefit charge for van 2.
Other examples
- the basic cases, EIM22870
- unavailability, EIM22872
- shared vans, EIM22874
- replacement vans, EIM22878
- insignificant private use, EIM22880.
