Section 158 — Income Tax (Earnings and Pensions) Act 2003: 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.