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HMRC internal manual

Employment Income Manual

Van benefit up to the tax year 2004 to 2005: scope and prohibition of other tax charges

Sections 239 and 269 ITEPA 2003

The van benefit charge is the only charge on the benefit of a van available for private use except that a separate charge is made where, exceptionally, expenses are incurred by or on behalf of the employer in providing a driver for the van while it is being used privately.

There is no separate charge for fuel provided for private motoring in the van.

In addition, the legislation forbids any charge in addition to the van benefit charge for:

  • the discharge of any liability of the employee in connection with the van (see EIM00580 onwards, section 239(1))
  • the reimbursement by the employer (or another person acting on behalf of the employer) of expenses incurred by the employee in connection with the van (see EIM20601, section 239(2)).
  • the use of a non-cash voucher or credit token to obtain, either directly or indirectly, goods or services in connection with the van (see EIM16100, section 269(1)).

Tax years from 2005 to 2006 onwards

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