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HMRC internal manual

Employment Income Manual

Van benefit from 2005/06: definitions - private use - kinds of private use

Sections 118 and 155 ITEPA 2003

‘Private use’ means any use other than for the employee’s business travel (EIM22735), section 118.

This is important because one of the basic conditions for a van benefit charge to apply (EIM22701) is that the van is available for private use, though remember that

  • there must be actual private use before the charge applies, and
  • a van for which private use is insignificant (EIM22745) remains outside the charge.

Two kinds of private use

For the purpose of the vans charge from 2005/06 onwards only, private use is split into two kinds:

  • where the restricted private use condition (EIM22795) is met in theory and in practice
  • where the restricted private use condition is not met.

Note that these two kinds of private use apply only to van benefit from 2005/06. They have no relevance to van benefit before 2005/06, nor to car benefit.

The cash equivalent: calculating the benefit charge

See EIM22790 for guidance on calculating the benefit charge.


There are examples covering the two kinds of private use at EIM22870.