EIM22705 - Van benefit from the tax year 2005 to 2006: transition to the new regime (table)

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.