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HMRC internal manual

Employment Income Manual

Van fuel benefit from 2005/06: shared vans

Section 164 ITEPA 2003

The van fuel benefit charge is incurred as detailed at EIM22900;there is an example at EIM22980.

Shared vans

If the cash equivalent of the benefit of a shared van is reduced under Section 157ITEPA 2003 (see EIM22830) a corresponding reduction is to bemade to the van fuel benefit.

The reduction in the van fuel benefit charge corresponds to the reduction in the vanbenefit charge after allowing for unavailability of the van (EIM22820)but before deducting payments for private use (EIM22840).

Other possible adjustments to the charge

The van benefit charge is also subject to adjustment as follows:

  • 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  • see EIM22930 if free fuel is withdrawn during the year and not reinstated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 EIM22940 for the effect of replacement vans.

2005/06 and 2006/07

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