Income Tax (Earnings and Pensions) Act 2003

163 Shared van: basic value

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

• 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.

  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—

  

  where—

  • E is the number of excluded days in the year,

  • Y is the number of days in the year, and

  • IV is the interim value of the van.

  • 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

(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.