EIM22765 - Van benefit from 2005/06: exceptions - pooled vans and vans where private use is prohibited

Sections 118(1) and 168 ITEPA 2003

»Ê¹ÚÌåÓýappre are three exceptions to the scope of the van benefit charge at EIM22701. »Ê¹ÚÌåÓýappy are:

  • a van that the employee is specifically prohibited from using for any private purpose and that is not so used, Section 118(1)
  • a van for which private use is insignificant (EIM22745)
  • vans which are “pooled vansâ€�, for which there is no benefit charge if the conditions in Section 168 are met. »Ê¹ÚÌåÓýappy are considered in detail at EIM23450 onwards.

Private use prohibited

»Ê¹ÚÌåÓýapp mere prohibition of private use is insufficient to prevent a tax charge. It is also necessary to show that the van is not used for private motoring (though use meeting the ‘insignificantâ€� test will escape charge under the second exception above).

Refer to EIM23300 if a director or an employee (except for 2015/16 and earlier those in excluded employment, see EIM20007) quotes Gilbert v Hemsley (55TC419) in support of a claim that:

  • the use of a provided van for private motoring is forbidden and
  • no such use is made of it.