Income Tax (Earnings and Pensions) Act 2003 section 169A

Van available to more than one member of family or household employed by same employer

Section 169A prevents a double tax charge where a company van is made available to a family or household member and both individuals work for the same employer.

• Where an employee ("E") and a member of their family or household ("M") both work for the same employer, and M is provided with a company van, E would normally face a tax charge on the van benefit by virtue of the family or household connection.
• Section 169A removes the tax charge on E for both the van benefit and any associated fuel benefit, provided that M is themselves taxed on the van, or M is in lower-paid employment as a minister of religion.
• This rule prevents the same van benefit from being taxed twice — once on M as the person to whom the van is made available, and again on E as a connected family or household member.
• The relief applies for the full tax year in which the van is made available, covering both the cash equivalent of the van benefit and the cash equivalent of any fuel provided for the van by reason of E's employment.