Van benefit from tax year 2005 to 2006: example - payments for private use
Section 158 ITEPA 2003
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|
|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.