Part 3Employment income: earnings and benefits etc. treated as earnings

Chapter 6Taxable benefits: cars, vans and related benefits

F2Vans: reductions of cash equivalent

Annotations:
Amendments (Textual)
F2

Ss. 155-164 substituted for ss. 155-166 (with effect in accordance with s. 80(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 14 para. 5

156Meaning of “shared van”

1

The cash equivalent of the benefit of a van for a tax year under section F1155 is to be reduced if the van has been unavailable on any day during the year.

2

For the purposes of this section a van is unavailable on any day if the day—

a

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

b

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

c

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

3

The amount of the reduction is given by the formula—

where—

U is the number of days in the year on which the van is unavailable,

Y is the number of days in the year, and

CE is the amount of the cash equivalent before any reduction.