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HMRC internal manual

Employment Income Manual

Van benefit to 2004/05: shared availability: payment for private use of van

Section 165 ITEPA 2003

A deduction is to be made from the provisional sum calculated under Step 6 of Section 161(1) ITEPA 2003 (see EIM22090) or Step 3 of Section 164(2) ITEPA 2003 (see EIM22097) if, as a condition of the van or vans involved being available for the employee’s private use, the employee:

  • is required in the tax year in question to pay (whether by way of deduction from earnings or otherwise) an amount of money for that use and
  • makes such payment.

The provisional sum is reduced pound for pound by any such amount paid.

If the amount exceeds the provisional sum at Step 6, the value of shared availability is nil.

See EIM25250 for the meaning of payment for private use.

See EIM22084 for payments for private use of exclusive use vans.

Years from 2005/06 onwards

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