Van benefit from 2005/06: example - payments for private use
Section 158 ITEPA 2003
An employee uses two vans, for which the benefit charges (after reductions for sharing) are £2,250 and £750. In addition, the employee pays £1,000 pa for the private use of each van (i.e. £2,000 in all); the payments qualify for deduction under EIM22840.
Van benefit calculation
|Van 1||Van 2|
|Benefit charges||£2,318||£ 773|
|Payments for private use||£1,000||£1,000|
|Net benefit charge||£1,318||£ nil|
Note that there is no additional relief available, either here or elsewhere, for the £250 by which payments for Van 2 exceed the benefit charge for van 2.