Section 156 — Income Tax (Earnings and Pensions) Act 2003: Meaning of “shared van”

Meaning of “shared van” 156 1 The cash equivalent of the benefit of a van for a tax year under section 155 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— U Y × 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.