Income Tax (Earnings and Pensions) Act 2003

155Method of calculating the cash equivalent of the benefit of a van
This section has no associated Explanatory Notes

(1)The method of calculation of the cash equivalent of the benefit of a van for a tax year depends upon whether the van is a shared van for the whole or any part of that year.

(2)If the van is not a shared van for the whole or any part of the year, the cash equivalent of the benefit of the van for the year is the value of exclusive availability calculated in accordance with section 157.

(3)If the van is a shared van for the whole of the year, the cash equivalent of the benefit of the van for the year is the value of shared availability calculated in accordance with section 160.

This is subject to subsection (7) where more than one shared van is available to an employee.

(4)If the van is a shared van for only part of the year the cash equivalent of the benefit of the van for the year is the total of—

(a)the value of exclusive availability calculated in accordance with section 157 (for the period when it is not a shared van), and

(b)the value of shared availability calculated in accordance with section 160 (for the period when it is a shared van).

This is subject to subsection (7) where more than one shared van is available to an employee.

(5)The value of shared availability calculated in accordance with section 160 under section 161 (normal calculation) takes account of—

(a)the shared van, and

(b)where that van is made available by the employer, any other vans made available by the employer (whether or not to the employee or a member of the employee’s family or household) which are shared vans for the whole or any part of the tax year in question.

(6)The value of shared availability calculated in accordance with section 160 under section 164 (alternative calculation) takes account of—

(a)the shared van, and

(b)where that van is made available by the employer, any other vans made available by the employer to the employee or a member of the employee’s family or household which are shared vans for the whole or any part of the tax year in question.

(7)Accordingly, if more than one shared van, which is made available by the same employer, is available to an employee in a tax year the total of the cash equivalents in respect of those vans is calculated by—

(a)taking the value of shared availability calculated once in accordance with section 160, and

(b)if any of those vans is a shared van for only part of the year, adding the value of exclusive availability in respect of each of those vans calculated in accordance with section 157.

(8)This section is subject to section 166 (limit of cash equivalent).