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HMRC internal manual

Employment Income Manual

Van benefit to 2004/05: general

Sections 114 and 154 ITEPA 2003

Where a van is provided for private use by a director or employee (except those in lower paid employment, see EIM20007) the normal rule for arriving at the cash equivalent of the benefit (see EIM21102) is replaced by a benefit charge. The way in which the benefit charge applies in a particular case will depend on a number of factors. The main ones are:

  • the age of the van (see EIM22067)
  • the periods when it is available
  • whether the van is available for exclusive or shared use and
  • for shared vans (see EIM22070) the number of participating employees.

Years from 2005/06 onwards

Full guidance on van benefit for these years can be found using the contents page at EIM22700.