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HMRC internal manual

Employment Income Manual

Van benefit to 2004/05: exclusive use: example

Section 157 ITEPA 2003

This example illustrates:

  • the calculation of the value of exclusive availability (see EIM22080)
  • the meaning and effect of when a van is unavailable (see EIM22082)
  • the effect of payments for private use of such a van (see EIM22084).


On 6 May 2003 X Ltd buys a van that was first registered on 5 April 2000 and makes itavailable to employee A, who is not in lower paid employment. There is no prohibition onprivate use. On 30 June the van breaks down and is taken to a garage for repair. Therepairs are completed on 13 August and A collects the van that day. It remains availableto A for the rest of the year. It is never made available to any other employee.

Calculation of value of exclusive availability

    Running total
Step 1 The van is aged four years or more on 5 April 2004 (see EIM22067).  
Step 2 Its basic amount is therefore £350 (see EIM22080). £350
Step 3 The van is unavailable to A from 6 April to 5 May inclusive and from 1 July to 12 August inclusive (see EIM22082), a total of 73 days.  
  Reduce the value carried down from Step 2 by:  
  £350 x 73/366 (2004 is a leap year) = £70. £280
Step 4 No payments for private use, so no adjustment. £280

Note that if the repairs had been completed on 29 July (less than 30 days after 30June) the van would have been treated as available even while under repair (see EIM22082).

Example of payment for private use

If A had been required to pay £150 for private use of the above van and had done so,the charge on A would have been further reduced by the £150 to £130.

Years from 2005/06 onwards

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