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|
|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.