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HMRC internal manual

Employment Income Manual

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.

Step Action
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.