Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 155: Method of calculating the cash equivalent of the benefit of a van
597.This section states the principles involved in calculating the cash equivalent of the benefit of a van. The section derives from paragraphs 1(1), 4(1) and 5(6) and (10) of Schedule 6A to ICTA.
598.Subsection (1) states the starting point of the calculation. That is whether or not the van is shared at any time in the tax year.
599.Subsection (2) identifies the provision that contains the basis of calculation that applies if the van was not a shared van, as defined in section 156 of this Act, for any period in the tax year.
600.Subsection (3)  identifies the provision that contains the basis of calculation that applies if the van was a shared van, as defined in section 156, for the whole of the tax year.
601.Subsection (4) applies when the van is shared for only part of the year, and simplifies the proposition set out in the source legislation. See item C of Note 17 in Annex 2.
602.Subsections (5) and (6)  make it clear which vans are counted in the calculation of the value of shared availability under, respectively, the normal and alternative methods of calculation.
603.Subsection (7) states the rule for calculating the total value of shared availability when an employee shares more than one van.
604.Subsection (8) gives a signpost to a section that imposes an overall limit on the cash equivalent of the benefit arising from the provision of a van or vans.