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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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Van benefit from 2005/06: replacement vans

Section 159 ITEPA 2003

The definition of unavailable (see EIM22825) means that if a van is not available for a period of less than 30 days, the employee is charged as though it remained available throughout. If during that period the employee is provided with a replacement van, for example when the normal van is being repaired, the charge for the normal van is not reduced but (apart from Section 159) there is also a charge for the replacement van.

Section 159(2) ITEPA 2003 prevents that double charge and therefore affects the charge on both normal and replacement vans. It works in a different way to the replacement cars regime (EIM25125) because the vans charge is a scale charge which is not related to the particular van.

Effect on the charge for the normal van

Section 159 simply treats the replacement van as though it were the normal van. The terms and conditions applying to the replacement van are therefore treated as though they applied to the normal van. When calculating the van benefit charge for the normal van:

  • any private use of the replacement van is treated as private use of the normal van for all purposes, including the restricted private use condition (EIM22795)
  • any sharing of the replacement van is treated as sharing of the normal van, EIM22830 
  • any payments for private use of the replacement van are treated as payments for the normal van, EIM22840.

Effect on the charge for the replacement van

Section 159(2)(a) treats the replacement van as though it were unavailable for the period for which it acts as replacement. There is therefore no separate charge for the replacement van; in effect, the charge for the normal van covers it.

Effect on the van fuel charges for normal and replacement van

See EIM22940.

Example

There is an example at EIM22878.