Part 3

Employment income: earnings and benefits etc. treated as earnings
Chapter 6

Taxable benefits: cars, vans and related benefits

Reduction for payments for private use

Reduction for payments for private use
158
1
The cash equivalent of the benefit of a van for a tax year under section
155
(after any reduction under sections 156 and 157) is to be reduced if, as a condition of the van being available for the employee’s private use, the employee—
a
is required in that year to pay (whether by way of deduction from earnings or otherwise) an amount of money for that use, and
b
pays that amount
on or before 6 July following
that year.
2
If the amount paid
as mentioned in subsection (1)(b)
by the employee in respect of that year is equal to or exceeds that cash equivalent, it is reduced to nil.
3
In any other case that cash equivalent is reduced by the amount paid
as mentioned in subsection (1)(b)
by the employee.
4
In this section the reference to the 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.
Word in s. 158(1) substituted (with effect in accordance with s. 10(8) of the amending Act) by Finance Act 2015 (c. 11), s. 10(4)
Words in s. 158(1)(b) substituted (with effect in accordance with s. 1(14) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 1(10)(a)
Pt. 3 Ch. 6 modified (6.4.2021 for the tax year 2021-22) by Finance Act 2020 (c. 14), s. 10
Pt. 3 Ch. 6 modified (6.4.2020 for the tax year 2020-21) by Finance Act 2020 (c. 14), s. 9
Words in s. 158(2) inserted (with effect in accordance with s. 1(14) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 1(10)(b)
Ss. 155-164 substituted for ss. 155-166 (with effect in accordance with s. 80(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 14 para. 5
S. 158(1)(b) substituted (with effect in accordance with s. 25(3) of the amending Act) by Finance Act 2014 (c. 26), s. 25(2)
Words in s. 158(3) inserted (with effect in accordance with s. 1(14) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 1(10)(c)