EIM22876 - Van benefit from tax year 2005 to 2006: example - payments for private use
Section 158 ITEPA 2003
This example illustrates the principles at EIM22840. The rates of charge are shown at EIM22790.
An employee uses 2 vans, for which the benefit charges (after reductions for sharing) are £2,250 and £750. In addition, the employee pays £1,000 per annum for the private use of each van (i.e. £2,000 in all); the payments qualify for deduction under EIM22840.
Van benefit calculation
| Item | Van 1 | Van 2 |
|---|---|---|
| Benefit charge | £2,318 | £773 |
| Payment 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.