EIM22790 - Van benefit from tax year 2005 to 2006 onwards: cash equivalent
Section 155 ITEPA 2003 and section 58(12) Finance Act 2010
There are 2 levels of van benefit charge from the tax year 2005 to 2006 onwards, depending on whether or not the restricted private use condition (EIM22795) is met.
Vans for which the restricted private use condition is met - section 155(2)(a)
| Tax year | Van benefit |
|---|---|
| 2005 to 2006 onwards | Nil |
Vans for which the restricted private use condition is not met - section 155(3)
| Tax year | Van benefit | Notes |
|---|---|---|
| 2025 to 2026 | £4,020 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2023 to 2024 to 2024 to 2025 | £3,960 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2022 to 2023 | £3,600 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2021 to 2022 | £3,500 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2020 to 2021 | £3,490 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2019 to 2020 | £3,430 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2018 to 2019 | £3,350 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2017 to 2018 | £3,230 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2016 to 2017 | £3,170 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2015 to 2016 | £3,150 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2014 to 2015 | £3,090 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
| 2007 to 2008 to 2013 to 2014 | £3,000 | Applies to all vans, regardless of age. Subject to the special treatment of ‘zero emission’ vans - see below |
Zero emissions vans
A zero emission van is one which cannot in any circumstances emit CO2 by being driven.
For tax years 2010 to 2011 to 2014 to 2015 inclusive, the cash equivalent for such vans is always nil.
For tax years 2021 to 2022 onwards, the cash equivalent for such vans is also nil.
Van benefit charge (VBC) for zero emission vans for tax years before 2021 to 2022
| Tax year | Van benefit |
|---|---|
| 2020 to 2021 | 80% of VBC for 2020 to 2021 |
| 2019 to 2020 | 60% of VBC for 2019 to 2020 |
| 2018 to 2019 | 40% of VBC for 2018 to 2019 |
| 2017 to 2018 | 20% of VBC for 2017 to 2018 |
| 2016 to 2017 | 20% of VBC for 2016 to 2017 |
| 2015 to 2016 | 20% of VBC for 2015 to 2016 (that is £3,150 × 20% = £630) |
Adjustments to the charge for the whole year
The van benefit charge for the whole year is subject to reduction where:
- the van is unavailable for part of the year (EIM22820)
- the van is shared for some or all of the period for which it is available (EIM22830)
- the employee makes payments for private use of the van (EIM22840)
Examples
There are basic examples at EIM22870 and more complex ones on later pages.
Additional charges
There are additional charges where: