Income Tax (Earnings and Pensions) Act 2003

164 Value of shared availability: alternative calculation U.K.

(1) This section applies if the employee makes a claim for this section to apply instead of section 161.

(2) The value of shared availability is calculated as follows—

Step 1

Identify the van or vans involved in the calculation. They are—

(a) the shared van, and

(b) where that van is made available by the employer, any other vans made available by the same 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.

Step 2

Determine the number of relevant days for the van, or where more than one van is involved, for each of those vans.

Step 3

Calculate the provisional sum which is given by the formula—

where RD is the number of relevant days for the van or, where more than one van is involved, the total of the number of relevant days for each of those vans.

Step 4

Make any deduction from the provisional sum under section 165 in respect of payments by the employee for the private use of the van or vans involved.

The result is the value of shared availability.

(3) For the purposes of this section a relevant day is a day—

(a) which falls in the tax year in question, and

(b) during which (or during part of which) the employee or a member of the employee’s family or household makes private use of the van concerned while it is a shared van.

(4) For the purposes of section 95 of TMA 1970 (incorrect return etc.) a claim under this section is to be treated as a claim for relief.