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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Van benefit from 2005/06: payments for private use of vans

Section 158 ITEPA 2003

A deduction is to be made from the van benefit charge after any reductions because the van was unavailable (EIM22820) or shared (EIM22830) if:

  • as a condition of the van being available for the employee’s private use,
  • the employee is required in the tax year in question to pay (whether by deduction from earnings or otherwise) an amount of money for that use and
  • the employee makes that payment.

From 2014/15 the wording of this section changed to ensure that any payment for private use must be paid within the relevant tax year before it can be deducted (see also EIM22845).

If the employee makes payments for a more expensive van, the principles at EIM25260 apply to vans as they do to cars.

See EIM25255 on payments for specific supplies or services, such as insurance.

The reference to the van being available for the employee’s private use includes a reference to the van being available for the private use of a member of the employee’s family or household.

Additional relief where payments exceed cash equivalent

There are no further reductions, here or elsewhere,

  • if payments do not meet the qualifying conditions above, or
  • to the extent that payments for private use of the van exceed the cash equivalent after reductions for unavailability (EIM22825) and sharing (EIM22830).

Reduction in van benefit to nil - effect on van fuel benefit charge

Where the restricted private use condition (EIM22795) is not met in relation to a van, the van fuel charge can apply even if the van benefit charge is reduced to nil by payments for private use of the van itself.

Replacement vans

See EIM22850 where there is a replacement van.


There is an example at EIM22876.