SCHEDULES

Schedule 6A Taxation of Directors and Others in Respect of Vans

F1Part I Basic Case

F2Cash equivalent

F31

(1)

This paragraph applies where the van mentioned in section 159AA(1)—

(a)

is not a van to which Part II of this Schedule applies for the year concerned, or

(b)

is a van to which that Part applies for the year concerned but is a shared van (within the meaning there given) for part only of the year.

(2)

Subject to paragraphs 2 and 3 below, the cash equivalent of the benefit is—

(a)

£500, if the van is aged less than 4 years at the end of the year concerned;

(b)

£350, if the van is aged 4 years or more at the end of the year concerned.

F4Reductions for periods where van unavailable

F52

(1)

Subject to paragraph 3 below, where paragraph 1 above applies and for any part of the year concerned—

(a)

the van is unavailable, or

(b)

the van is a shared van (within the meaning given by Part II of this Schedule),

the cash equivalent of the benefit is the amount ascertained under paragraph 1 above (the full amount) reduced by an amount which bears to the full amount the same proportion as the number of excluded days in the year bears to 365.

(2)

For the purposes of sub-paragraph (1) above a van is to be treated as being unavailable on any day if—

(a)

the day falls before the first day on which the van is available to the employee,

(b)

the day falls after the last day on which the van is available to the employee, or

(c)

the day falls within a period, of 30 days or more, throughout which the van is not available to the employee.

(3)

For the purposes of sub-paragraph (1) above an excluded day is a day on which the van falls within paragraph (a) or (b) of that sub-paragraph.

F6Reduction for payments for use of van

F73

(1)

Where paragraph 1 above applies and in the year concerned the employee is required, as a condition of the van being available for his private use, to pay any amount of money (whether by way of deduction from his emoluments or otherwise) for that use, then—

(a)

if the amount ascertained under paragraphs 1 and 2 above exceeds the relevant sum, the cash equivalent of the benefit is an amount equal to the excess;

(b)

if the relevant sum exceeds or is equal to the amount ascertained under paragraphs 1 and 2 above, the cash equivalent of the benefit is nil.

(2)

In sub-paragraph (1) above—

(a)

“the relevant sum” means the amount paid by the employee, as there mentioned, in respect of the year concerned, and

(b)

the reference to the van being available for the employee’s private use includes a reference to the van being available for the private use of others being members of his family or household.

(3)

If the van is a shared van (within the meaning given by Part II of this Schedule) for part of the year concerned, the reference in sub-paragraph (2) above to the year shall be construed as a reference to the part of the year when the van is not a shared van.