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HMRC internal manual

Employment Income Manual

Van benefit from tax year 2005 to 2006: 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
2018 to 2019 onwards £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.

Changes to van benefit charge (VBC) for  zero emission vans

Tax year Van benefit
2021 to 2022 90% of VBC for 2021 to 2022
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:

  • fuel is provided for a van for which the restricted private use condition is not met, EIM22900 onwards
  • exceptionally, expenses are incurred by or on behalf of the employer in providing a driver for the van, section 239(5); see the residual benefit rules from EIM21001