Income Tax (Earnings and Pensions) Act 2003 section 157

Reduction of cash equivalent where van is shared

Section 157 deals with how the taxable benefit of a van is reduced when the same employer makes it available to more than one employee at the same time for private use.

• Where a van is concurrently available to multiple employees of the same employer for private use, a reduction in the cash equivalent applies
• The cash equivalent for each employee is first calculated individually under the standard rules (sections 155 and 156), including any adjustment for periods of unavailability
• The resulting cash equivalent for each employee is then reduced on a just and reasonable basis to reflect the shared use of the van
• Private use of the van includes use by a member of the employee's family or household, not just the employee personally