EIM22740 - Van benefit from 2005/06: definitions - private use - kinds of private use

Sections 118 and 155 ITEPA 2003

‘Private use’ means any use other than for the employee’s business travel ( EIM22735), section 118.

This is important because one of the basic conditions for a van benefit charge to apply ( EIM22701) is that the van is available for private use, though remember that

• there must be actual private use before the charge applies, and
• a van for which private use is insignificant ( EIM22745) remains outside the charge.

Two kinds of private use

For the purpose of the vans charge from 2005/06 onwards only, private use is split into two kinds:

• where the restricted private use condition ( EIM22795) is met in theory and in practice
• where the restricted private use condition is not met.

Note that these two kinds of private use apply only to van benefit from 2005/06. They have no relevance to van benefit before 2005/06, nor to car benefit.

The cash equivalent: calculating the benefit charge

See EIM22790 for guidance on calculating the benefit charge.

Examples

There are examples covering the two kinds of private use at EIM22870.