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HMRC internal manual

Employment Income Manual

Van benefit to 2004/05: shared and exclusive vans: example 1

Section 155 ITEPA 2003

This example demonstrates how to calculate the van benefit charge where there are bothshared vans (see EIM22070) and exclusive use vans (see EIM22072).


X Ltd has three vans in 2003/04, all aged under four years on 5 April 2004.

One is available at all times to director A and employee B both for business and forprivate use.

The other two are available at all times to director A and his wife Mrs A, who is not anemployee.

No contributions are made for private use and there is no claim for the alternativecalculation (see EIM22097).

Shared van

The van used by A and B is in this category. The value of shared availability (see EIM22090) is calculated as follows:

Step 1 There is only one van involved.
Step 2 Director A and employee B are participating employees.
Step 3 There are 2 participating employees.
Step 4 Age of the van is less than 4 years.
  Its interim value is £500.
  There are no excluded days, so its basic value is £500.
Step 5 Reckonable amount = £500/2 = £250.
Step 6 The reckonable amount is less than £500, so the provisional sum is £250.
Step 7 No payments for private use, so no adjustment.
  The value of shared availability is £250.

Exclusive use vans

The other two vans are in this category because they are available exclusively to A anda member of his family or household (Mrs A) for the whole year. The value of exclusiveavailability for each van (see EIM22080) is therefore £500.

Total cash equivalent

A is chargeable on £1,250, which is made up of:

  • value of exclusive availability, £500 + £500 = £1,000, plus
  • value of shared availability, £250.

B is chargeable on £250 (value of shared availability only).

There is a more complex example at EIM22107.

Years from 2005/06 onwards

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