Section 10 | Zero-emission vans

(1)ITEPA 2003 is amended as follows.

(2)In section 155 (cash equivalent of the benefit of a van), for subsections (1) and (2) substitute—

(1)The cash equivalent of the benefit of a van for a tax year is calculated as follows.

(1A)If the restricted private use condition is met in relation to the van for the tax year, the cash equivalent is nil.

(1B)If that condition is not met in relation to the van for the tax year—

(a)if the van cannot in any circumstances emit CO2 by being driven and the tax year is any of the tax years 2015-16 to 2019-20, the cash equivalent is the appropriate percentage of £3,150, and

(b)in any other case, the cash equivalent is £3,150.

(1C)The appropriate percentage for the purposes of subsection (1B)(a) is—

(a)20% for the tax year 2015-16,

(b)40% for the tax year 2016-17,

(c)60% for the tax year 2017-18,

(d)80% for the tax year 2018-19, and

(e)90% for the tax year 2019-20.

(3)In section 156(1) (reduction for periods when van unavailable), for “155(1)” substitute “ 155 ”.

(4)In section 158(1) (reduction for payments for private use), for “155(1)” substitute “ 155 ”.

(5)In section 160(1)(c) (benefit of fuel treated as earnings), for “section 155(1)(b)” substitute “ section 155(1B)(b) ”.

(6)In section 170 (orders etc relating to Chapter 6 of Part 3), for subsection (1A) substitute—

(1A)The Treasury may by order substitute a different amount for the amount for the time being specified in—

(a)section 155(1A) (cash equivalent where van subject only to restricted private use by employee),

(b)section 155(1B)(a) (cash equivalent for zero-emission van), and

(c)section 155(1B)(b) (cash equivalent in other cases).

(7)Article 3 of the Van Benefit and Car and Van Fuel Benefit Order 2014 (S.I. 2014/2896) is revoked.

(8)The amendments made by this section have effect for the tax year 2015-16 and subsequent tax years.