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HMRC internal manual

Employment Income Manual

Van benefit to 2004/05: calculating the cash equivalent

Section 155 ITEPA 2003

The method depends on whether the van is a shared van for the whole or any part of theyear.

If the van is not a shared van at any time in the year

The cash equivalent is the value of exclusive availability under Section 157 ITEPA2003, see EIM22080.

If the van is a shared van for the whole year

The cash equivalent is the value of shared availability under Section 160 ITEPA 2003,see EIM22090.

If the van is a shared van for part of the year

The cash equivalent is the total of:

  • the value of exclusive availability and
  • the value of shared availability.

If more than one shared van is made available by the same employer to the sameemployee, the value of shared availability under Section 160 is the value of the sharedavailability of all shared vans, so is only counted once.

The cash equivalent is subject to limitation under Section 166 ITEPA 2003 (see EIM22077).

There are examples of the calculation for:

  • exclusive availability at EIM22105 and
  • shared and exclusive availability at EIM22106 and (more complex) EIM22107.

Years from 2005/06 onwards

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