EIM22790 - Van benefit from 2005/06: cash equivalent

Section 155 ITEPA 2003

There are two levels of van benefit charge from 2005/06 onwards, depending on whether or not the restricted private use condition ( EIM22795) is met.

Vans for which the restricted private use condition is met, s155(2)(a):

• 2005/06 onwards: nil.

Vans for which the restricted private use condition is NOT met, s155(3):

• 2005/06 and 2006/07: £500 (£350 if the age of the van ( EIM22729) is 4 years or more on the last day of the tax year)
• 2007/08 onwards (all vans, regardless of age): £3,000

Adjustments to the charge for the whole year

The van benefit charge for the whole year is subject to reduction where:

• the van is unavailable for part of the year ( EIM22820)
• the van is shared for some or all of the period for which it is available ( EIM22830)
• the employee makes payments for private use of the van ( EIM22840).

Examples

There are basic examples at EIM22870 and more complex ones on later pages.

Additional charges

There are additional charges where:

• fuel is provided for a van for which the restricted private use condition is not met, EIM22900 onwards
• exceptionally, expenses are incurred by or on behalf of the employer in providing a driver for the van, Section 239(5); see the residual benefit rules from EIM21001.