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HMRC internal manual

Employment Income Manual

Van benefit to 2004/05: what is a shared van?

Section 157 ITEPA 2003

Because the benefit for shared vans and the benefit for vans available only to one employee (or his family or household) are calculated separately and under different rules, it is essential to know when a van is a shared van.

A van is a shared van for a period if either Condition A or Condition B is met.

Condition A is met if throughout the period the van is available concurrently (i.e. at the same time) to more than one employee of the same employer.

Condition B is met if:

  • the period is one throughout which the van is available to different employees of the same employer (a “shared period”) and
  • the circumstances are such that the employee or employees to whom the van is available at any given time in the period are not necessarily the same as those to whom it is available at any other given time in the period.

In other words, a van is a shared van for any period (other than an exclusive period (see EIM22072)) throughout which it is available to different employees (see example at EIM22107).

If a van is a shared van for any part of a day it is treated as a shared van for the whole of that day (Section 156(5) ITEPA 2003).

Note that it is possible at different times in a year for a van to be:

  • a shared van
  • an exclusive use van (see EIM22072)
  • a pooled van (see EIM23450)
  • and maybe none of these.

So when calculating cash equivalents it is important to concentrate on the periods when a van is a shared van, rather than on the van itself.

Years from 2005/06 onwards

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