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Section 157 ITEPA 2003

The treatment of shared vans changed completely from 2005/06. It has been made similar (but, because of the differences between the two charges, not identical) to the treatment of shared cars, EIM25200.

Step 1 - take the full annual charge for the van

See EIM22790.

Step 2 - reduction for unavailability

Reduce the charge at Step 1 if the normal van is unavailable, EIM22820.

See EIM22850 where there is a replacement van.

Step 3 - reduction for sharing

Reduce the benefit charge calculated at Step 2 to reflect sharing by other employees (including by members of their family or household) on a just and reasonable basis.

In making the reduction, note that:

• sharing by all employees is included in the calculation, even if those employees are not themselves chargeable to van benefit because for 2015/16 and earlier they are in excluded employment
• sharing by a person who is not an employee but is a member of an employee’s family or household is attributed to the employee
• but if two members of the same family or household, one of whom is in excluded employment, are employed by the same employer and share a van, availability to the employee in excluded employment is disregarded when calculating the benefit charge for other members of that family or household
• it is unlikely to be just and reasonable to reduce an employee’s benefit charge where another employee has insignificant private use (EIM22745) for which either no charge or a nil charge is incurred. This is because such use will, by definition, have had an insignificant (“too small or unimportant to be worth considerationâ€�) effect on the first employee’s ability to use the van for private purposes.

Step 4 - reduction for payments for private use (where applicable)

The figure after Step 3 can be further reduced for payments for private use, EIM22840.

Example

There is an example at EIM22874.