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HMRC internal manual

Employment Income Manual

Van fuel benefit from 2005/06: replacement vans

Section 163(2) ITEPA 2003

The van fuel benefit charge is incurred as detailed at EIM22900;there is an example at EIM22980. It is affected as followswhere there is a replacement van.

Effect on fuel charge for normal van

Section 160 (the van fuel charging section) applies as though the replacement van werethe normal van. It follows that fuel provided for the replacement van is treated as thoughit were provided for the normal van.

Effect on fuel charge for replacement van

The replacement van is treated as unavailable for the days on which it replaces thenormal van. It follows that there is no van fuel charge for the replacement van for thatperiod.

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 EIM22935 if the van is shared
  • see EIM22930 if free fuel is withdrawn during the year and not reinstated.

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.