Income Tax (Earnings and Pensions) Act 2003 section 164

Van fuel: reduction of cash equivalent

Section 164 provides that where the taxable benefit of a shared van is reduced, the taxable benefit of the fuel provided for that van must be reduced in the same way.

• Where a van is shared among employees, the cash equivalent of the van benefit is reduced under section 157
• Any such reduction in the van benefit triggers a corresponding reduction in the fuel benefit
• The fuel benefit reduction mirrors the van benefit reduction proportionally
• This ensures that the fuel charge is consistent with the reduced van charge when a van is not exclusively available to one employee