Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 158: Deduction for periods of unavailability or shared use
610.This section provides for an adjustment of the value calculated under section 157 if the van is not available or is shared for any period in the tax year. The section derives from parts of paragraph 2(1) and from paragraph 2(2) and (3) of Schedule 6A to ICTA.
611.Subsection (1) provides for a deduction to be made from the value calculated at Step 2 of section 157 when there are “excluded days” in relation to the van.
612.Subsection (2) defines “excluded days” as days when the van is unavailable or shared.
613.Subsection (3) gives a formula to calculate the deduction. The formula uses “Y” for the number of days in the year instead of “365” in the source legislation. This is the same change in principle as that described in paragraph 594. See item A of Change 28 in Annex 1.
614.Subsection (4) defines the periods of non-availability. Apart from periods relating to the van first being available or ceasing finally to be available, such periods must last for a continuous period of at least 30 days. They can run from the beginning of the tax year involved to the date on which the van first became available or from the date when the van ceased permanently to be available to the end of that tax year. There can also be one or more periods of temporary non-availability for each continuous period of 30 days or more. Such periods can span two tax years, ie the period of 30 days or more does not have to fall wholly within one tax year.