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Introduction

The tax rules relating to company vans are reasonably simple compared with the company car rules. Generally speaking, where vans are provided for business use with only small amounts of private use, no taxable benefit arises.

A benefit in kind charge arises on an employee under the company van provisions if all of the following steps apply:

1. •

   there is a van (see EIM22725)

2. •

   it is made available (see EIM23200)

3. •

   to an employee or director (or member of their family or household, see EIM22760)

4. •

   for private use

5. •

   the van is made available without transfer of ownership (see EIM23205)

6. •

   the van is provided by reason of the employment (see the How might non-cash income and benefits be taxed? guidance note and EIM23250)

ITEPA 2003, ss 114, 115

This guidance note discusses the provision of vans from both the employee and the employer’s perspective and how and when tax consequences arise. For consideration of whether a fuel benefit arises please see the Fuel ― company vans guidance note.

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