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Step 1 | |
Determine the age of the van. | |
Step 2 | |
If the age of the van is less than 4 years at the end of the tax year in question, | |
the interim value of the van is £500. | 5 |
In any other case, the interim value of the van is £350. | |
Step 3 | |
Make a deduction from the interim value if there are any excluded days during | |
the tax year in question. | |
The amount of the deduction is given by the formula— | 10 |
![equation: cross[over[char[E],char[Y]],times[char[I],char[V]]]](missing.gif) | |
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where— | |
E is the number of excluded days in the year, | |
Y is the number of days in the year, and | 15 |
IV is the interim value of the van. | |
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The result is the basic value of the van for the year. | |
(2) In this section an “excluded day” means a day on which— | |
(a) the van is not a shared van, or | 20 |
(b) the van is incapable of use. | |
(3) For the purposes of this section a van is to be treated as incapable of use on any | |
day if the day falls within a period of 30 days or more throughout which the | |
van is incapable of being used at all. | |
164 Value of shared availability: alternative calculation | 25 |
(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— | 30 |
(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. | 35 |
Step 2 | |
Determine the number of relevant days for the van, or where more than one | |
van is involved, for each of those vans. | |
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Step 3 | |
Calculate the provisional sum which is given by the formula—![equation: cross[times[char[R],char[D]],string["\xa3 5"]]](missing.gif) | |
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 | 5 |
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. | |
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The result is the value of shared availability. | |
(3) For the purposes of this section a relevant day is a day— | 10 |
(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 | 15 |
this section is to be treated as a claim for relief. | |
165 Deduction for payments for private use | |
(1) A deduction is to be made from the provisional sum calculated under step 6 of | |
section 161(1) or step 3 of section 164(2) if, as a condition of the van or vans | |
involved being available for the employee’s private use, the employee— | 20 |
(a) is required in the tax year in question to pay (whether by way of | |
deduction from earnings or otherwise) an amount of money for that | |
use, and | |
(b) makes such payment. | |
(2) If the relevant sum in respect of that year is equal to or exceeds the provisional | 25 |
sum, the provisional sum is reduced so that the value of shared availability is | |
nil. | |
(3) In any other case the relevant sum in respect of the year is deducted from the | |
provisional sum in order to give the value of shared availability. | |
(4) The relevant sum is found by— | 30 |
(a) taking for any van involved the amount paid by the employee as a | |
condition of it being available for the employee’s private use in respect | |
of the period when it is a shared van in the year concerned, and | |
(b) where more than one van is involved, adding together all the amounts | |
found under paragraph (a). | 35 |
(5) In this section any reference to a van being available for the employee’s private | |
use includes a reference to the van being available for the private use of a | |
member of the employee’s family or household. | |
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Vans: limit of cash equivalent | |
166 Vans: limit of cash equivalent | |
If— | |
(a) the cash equivalent of the benefit of vans to an employee for a year | |
would (apart from this section) total more than £500, and | 5 |
(b) no more than one of the vans is available to the employee for the | |
employee’s private use, or the private use of a member of the | |
employee’s family or household, at any one time in the year, | |
the cash equivalent of the benefit of the vans to the employee for the year is to | |
be £500. | 10 |
Cars and vans: exceptions | |
167 Pooled cars | |
(1) This section applies to a car in relation to a particular tax year if for that year | |
the car has been included in a car pool for the use of the employees of one or | |
more employers. | 15 |
(2) For that tax year the car— | |
(a) is to be treated under section 114(1) (cars to which this Chapter applies) | |
as not having been available for the private use of any of the employees | |
concerned, and | |
(b) is not to be treated in relation to the employees concerned as an | 20 |
employment-related benefit within the meaning of Chapter 10 of this | |
Part (taxable benefits: residual liability to charge) (see section 201). | |
(3) In relation to a particular tax year, a car is included in a car pool for the use of | |
the employees of one or more employers if in that year— | |
(a) the car was made available to, and actually used by, more than one of | 25 |
those employees, | |
(b) the car was made available, in the case of each of those employees, by | |
reason of the employee’s employment, | |
(c) the car was not ordinarily used by one of those employees to the | |
exclusion of the others, | 30 |
(d) in the case of each of those employees, any private use of the car made | |
by the employee was merely incidental to the employee’s other use of | |
the car in that year, and | |
(e) the car was not normally kept overnight on or in the vicinity of any | |
residential premises where any of the employees was residing, except | 35 |
while being kept overnight on premises occupied by the person making | |
the car available to them. | |
168 Pooled vans | |
(1) This section applies to a van in relation to a particular tax year if for that year | |
the van has been included in a van pool for the use of the employees of one or | 40 |
more employers. | |
(2) For that tax year the van— | |
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(a) is to be treated under section 114(1) (vans to which this Chapter | |
applies) as not having been available for the private use of any of the | |
employees concerned, and | |
(b) is not to be treated in relation to the employees concerned as an | |
employment-related benefit within the meaning of Chapter 10 of this | 5 |
Part (taxable benefits: residual liability to charge) (see section 201). | |
(3) In relation to a particular tax year, a van is included in a van pool for the use of | |
the employees of one or more employers if in that year— | |
(a) the van was made available to, and actually used by, more than one of | |
those employees, | 10 |
(b) the van was made available, in the case of each of those employees, by | |
reason of the employee’s employment, | |
(c) the van was not ordinarily used by one of those employees to the | |
exclusion of the others, | |
(d) in the case of each of those employees, any private use of the van made | 15 |
by the employee was merely incidental to the employee’s other use of | |
the van in that year, and | |
(e) the van was not normally kept overnight on or in the vicinity of any | |
residential premises where any of the employees was residing, except | |
while being kept overnight on premises occupied by the person making | 20 |
the van available to them. | |
169 Car available to more than one member of family or household employed by | |
same employer | |
(1) This section applies where— | |
(a) an employee (“E”) and a member of the employee’s family or | 25 |
household (“M”) are employed by the same employer, and | |
(b) as a result of a car being made available to M in a tax year, E would | |
(apart from this section) be chargeable to tax in respect of the car in that | |
year by virtue of section 120. | |
(2) The cash equivalent of the benefit of the car and of any fuel provided for the | 30 |
car by reason of E’s employment is not to be treated as E’s earnings for that | |
year if— | |
(a) M is chargeable to tax in respect of the car in that year by virtue of | |
section 120, or | |
(b) where M’s employment is an excluded employment, M had the benefit | 35 |
of the car in M’s own right as an employee and condition A or B is met. | |
(3) Condition A is met if equivalent cars are made available on the same terms to | |
employees who— | |
(a) are in similar employment to M with the same employer, and | |
(b) are not members of the family or household of employees of that | 40 |
employer who are employed in employment which is not an excluded | |
employment. | |
(4) Condition B is met if the making available of an equivalent car is in accordance | |
with the normal commercial practice for an employment of the kind held by M. | |
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