Section 156 Meaning of “shared van”F1

United Kingdom

(1)

The cash equivalent of the benefit of a van for a tax year under section F2155 is to be reduced if the van has been unavailable on any day during the year.

(2)

For the purposes of this section a van is unavailable on any day if the day—

(a)

falls before the first day on which the van is available to the employee,

(b)

falls after the last day on which the van is available to the employee, or

(c)

falls within a period of 30 days or more throughout which the van is not available to the employee.

(3)

The amount of the reduction is given by the formula—

\frac{U}{Y} \times CE

where—

U is the number of days in the year on which the van is unavailable,

Y is the number of days in the year, and

CE is the amount of the cash equivalent before any reduction.

Annotations

Textual amendments

F1: 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
F2: Word in s. 156(1) substituted (with effect in accordance with s. 10(8) of the amending Act) by Finance Act 2015 (c. 11), s. 10(3)

Notes on Chapter 6

Modifications

C1: Pt. 3 Ch. 6 modified (6.4.2020 for the tax year 2020-21) by Finance Act 2020 (c. 14), s. 9
C2: Pt. 3 Ch. 6 modified (6.4.2021 for the tax year 2021-22) by Finance Act 2020 (c. 14), s. 10