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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Van benefit to 2004/05: basic value of a shared van

Section 163 ITEPA 2003

The basic value of a shared van is calculated as follows:

Step 1 EIM22067 Determine the age of the van.
     
Step 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.
Step 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) x IV
    where:
    E is the number of excluded days in the year
    Y is the number of days in the year and
    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 (see EIM22070), or
  • the van is incapable of use (i.e. 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 two tax years.)

Years from 2005/06 onwards

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