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HMRC internal manual

Employment Income Manual

Van benefit from the tax year 2005 to 2006: example - unavailability

Section 156 ITEPA 2003

This example illustrates the principles at EIM22820.

On 6 May 2014, X Ltd buys a van and makes it available to an employee who is not in excluded employment. For the purposes of calculating the van benefit charge under EIM22790, the restricted private use condition is not met.

On 30 November, the van breaks down and is taken to a garage for repair. The repairs are completed on 13 January and the employee collects the van that day. It remains available to the employee for the rest of the year and is never made available to any other employee.


Value of unrestricted use for the whole of the tax year 2014 to 2015 A   £3,090
The van is unavailable from 6 April to 5 May   30 days  
and from 1 December to 12 January inclusive   43 days  
Total days unavailable in the tax year 2014 to 2015   73 days  
Reduction for unavailability: £3,090 × 73 days in the tax year 2014 to 2015 (365) B   £618
Van benefit charge for this van A − B   £2,472

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