Van benefit up to tax year 2004 to 2005: basic value of a shared van
Section 163 ITEPA 2003
The basic value of a shared van is calculated as follows.
|1||Determine the age of the van.|
|2||If the age of the van is less than 4 years at the end of the tax year in question, the interim value of the van is £500. In any other case, the interim value of the van is £350.|
|3||Make a deduction from the interim value if there are any excluded days during the tax year in question. The amount of the deduction is given by the formula ‘(E ÷ Y) × IV’ where:|
- ‘E’ is the number of excluded days in the year
- ‘Y’ is the number of days in the year
‘IV’ is the interim value of the van.
In the above, an excluded day means a day on which:
- the van is not a shared van, or
- the van is incapable of use (that is, if the day falls within a period of 30 days or more throughout which the van is incapable of being used at all - such a period may span 2 tax years.)
Tax years from 2005 to 2006 onwards
You can find full guidance on van benefit for these tax years using the contents page at EIM22700.