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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Van benefit from 2005/06: transition to the new regime (table)

Sections 114 and 154 ITEPA 2003

Finance Act 2004 changed the van benefits regime with effect from 2005/06. However, the government decided to stagger the transition so that the new regime did not come into full effect until 2007/08 with some elements of the old regime remaining in place until 2006/07.

In order to minimise confusion, the table below summarises the changes and includes hyperlinks to guidance on the new regime only.

### Description ### Previous regime: years to 2004/05 ### Transitional years: (2005/06 & 2006/07) ### New regime: years 2007/08 onwards
       
Private use (all kinds) £500 (£350 if van is 4 years old) n/a n/a
Private use: restricted private use condition (EIM22795) met n/a Nil, EIM22790   
  Nil, EIM22790 
         
  Private use: all other n/a £500 (£350 if van is 4 years old); EIM22790  £3000, EIM22790 
  Reduction for unavailability Yes Yes, EIM22820  Yes, EIM22820 
  Shared vans Separate rules Just & reasonable, EIM22830  Just & reasonable, EIM22830 
  Reduction for payments for private use Shared and exclusive vans separate From benefit charge for each van, EIM22840  From benefit charge for each van, EIM22840 
  Replacement vans rules No Yes, EIM22850  Yes, EIM22850 
  Effect of insignificant private use Full charge No benefit charge, EIM22745  No benefit charge, EIM22745 
  Pooled vans No benefit charge No benefit charge, EIM23450 onwards No benefit charge, EIM23450 onwards
  Van fuel benefit charge (all vans) No n/a n/a
  Van fuel benefit charge (restricted private use condition met) n/a n/a n/a
  Van fuel benefit charge (restricted private use condition not met) n/a Yes, EIM22900 (charge nil, so ignore in practice) Yes, EIM22900 

There is a summary of the new regime in the table at EIM22702.

Years to 2004/05

Full guidance on van benefit for these years can be found using the contents page at EIM22050.