EIM22876 - Van benefit from tax year 2005 to 2006: example - payments for private use
Section 158 ITEPA 2003
This example illustrates the principles at EIM22840. The rates of charge are shown at EIM22790.
An employee uses 2 vans, for which the benefit charges (after reductions for sharing) are 拢2,250 and 拢750. In addition, the employee pays 拢1,000 per annum for the private use of each van (i.e. 拢2,000 in all); the payments qualify for deduction under EIM22840.
Van benefit calculation
| Item | Van 1 | Van 2 |
|---|---|---|
| Benefit charge | 拢2,318 | 拢773 |
| Payment for private use | 拢1,000 | 拢1,000 |
| Net benefit charge | 拢1,318 | Nil |
Note that there is no additional relief available, either here or elsewhere, for the 拢250 by which payments for van 2 exceed the benefit charge for van 2.