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

Chapter 6Taxable benefits: cars, vans and related benefits

Vans: value of shared availability

160Value of shared availability

The value of shared availability is calculated under—

(a)section 161, or

(b)section 164 where the employee makes a claim for that section to apply.

161Value of shared availability: normal calculation

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

The result is the value of shared availability.

(2)The calculation is made under this section in relation to a participating employee regardless of—

(a)the number of vans involved which are available to the particular employee,

(b)the fact that a particular van involved is or is not available to, or used by, the employee, or

(c)the extent to which a particular van involved is available to, or used by, the employee.

162Shared van: meaning of “participating employee”

(1)If only one van is involved, an employee is a participating employee for the purposes of section 161 if—

(a)the van is available to the employee for the employee’s private use while it is a shared van, and

(b)the employee makes private use of it at least once while it is a shared van.

(2)If more than one van is involved, an employee is a participating employee for the purposes of section 161 if—

(a)one of the vans is available to the employee for the employee’s private use while it is a shared van, or

(b)some or all of the vans are available to the employee for the employee’s private use while they are shared vans,

and the employee makes private use of at least one of the vans involved while it is a shared van.

(3)In this section—

(a)any reference to a van being available for an 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, and

(b)any reference to an employee making private use of a van includes a reference to a member of the employee’s family or household making private use of it.

163Shared van: basic value

(1)The basic value of a shared van is calculated as follows—

(2)In this section an “excluded day” means a day on which—

(a)the van is not a shared van, or

(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.

164Value of shared availability: alternative calculation

(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—

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.

165Deduction 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—

(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 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—

(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).

(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.