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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Van fuel benefit from 2005/06: cash equivalent

Section 161 ITEPA 2003

The van fuel charge is not incurred:

  • for years to 2009/10 if the van is powered solely by electricity
  • for years from 2010/11 onwards if the van cannot in any circumstances emit CO2 by being driven (a zero emission van).

Cash equivalent where the charge is incurred

The cash equivalent of the van fuel benefit charge is as follows:

  • 2005/06 and 2006/07: nil (see note below)
  • 2007/08 to 2009/10: £500
  • 2010/11 to 1012/13: £550
  • 2013/14: £564
  • 2014/15: £581
  • 2015/16: £594

Possible adjustments to the charge

The above charge is subject to adjustment as follows:

  • see EIM22920 for conditions under which it is reduced to nil
  • see EIM22925 if the van is unavailable for part of the year
  • see EIM22930 if free fuel is withdrawn during the year and not reinstated
  • see EIM22935 if the van is shared
  • see EIM22940 for the effect of replacement vans.

Example

See EIM22980.

2005/06 and 2006/07

Because the van fuel benefit charge is nil for these two years, its existence can effectively be ignored until 2007/08.

Years prior to 2005/06

There was no separate charge for van fuel before 2005/06 because the benefit was covered by the van benefit charge, see EIM22068.