EIM22705 | Van benefit from the tax year 2005 to 2006: transition to the new regime (table)
From HM Revenue & Customs · Employment Income Manual
Sections 114 and 154 ITEPA 2003
Finance Act 2004 changed the van benefits regime from the tax year 2005 to 2006. However, the government decided to stagger the transition so that the new regime did not come into full effect until the tax year 2007 to 2008 with some elements of the old regime remaining in place until the tax year 2006 to 2007.
To minimise confusion, the table below summarises the changes and includes hyperlinks to guidance on the new regime only.
| Description | Previous regime: years to 2004 to 2005 | Transitional years: 2005 to 2006 and 2006 to 2007) | New regime: years 2007 to 2008 onwards |
|---|---|---|---|
| Private use (all kinds) | £500 (£350 if van is 4 years old) | Not applicable | Not applicable |
| Private use: restricted private use condition (EIM22795) met | Not applicable | Nil - EIM22790 | Nil - EIM22790 |
| Private use: all other | Not applicable | £500 (£350 if van is 4 years old) - EIM22790 | £3,000 - EIM22790 |
| Reduction for unavailability | Yes | Yes - EIM22820 | Yes - EIM22820 |
| Shared vans | Separate rules | Just and reasonable - EIM22830 | Just and reasonable - EIM22830 |
| Reduction for payments for private use | Shared and exclusive vans separate | From benefit charge for each van - EIM22840 | From benefit charge for each van - EIM22840 |
| Replacement vans rules | No | Yes - EIM22850 | Yes - EIM22850 |
| Effect of insignificant private use | Full charge | No benefit charge - EIM22745 | No benefit charge - EIM22745 |
| Pooled vans | No benefit charge | No benefit charge - EIM23450 onwards | No benefit charge - EIM23450 onwards |
| Van fuel benefit charge (all vans) | No | Not applicable | Not applicable |
| Van fuel benefit charge (restricted private use condition met) | Not applicable | Not applicable | Not applicable |
| Van fuel benefit charge (restricted private use condition not met) | Not applicable | Yes - EIM22900 (charge nil, so ignore in practice) | Yes - EIM22900 |
There’s a summary of the new regime in the table at EIM22702.