EIM21873 - Asset made available without transfer to a director or employee from 6 April 2017
Section 205 and 205A ITEPA 2003
From the 2017/18 tax year pages EIM21630 to EIM21638 no longer apply. Pages EIM21875 to EIM21895 should be used instead.
From 6 April 2017 there are new tax rules for directors or employees who have an asset made available to them for their private use (without ownership of the asset actually transferring). These rules explain how to calculate the chargeable value of the benefit (the “cash equivalent”) when an employee has an asset made available for him or her to use for private use or where the asset is used for both private and business use.
The rules for fair bargain (see EIM21004) or where the ownership of the asset is transferred to the director or employee have not changed.
This guidance consists of:
- a comparison of the new and old rules - EIM21875
- what an asset is for these rules - EIM21878
- when the rules apply - EIM21880
- how to calculate the chargeable benefit - EIM21882
- how to calculate the annual cost of the benefit - EIM21885
- how to calculate the deduction for unavailability - EIM21888
- example on calculating the deduction for unavailability - EIM21890
- how to calculate the chargeable benefit if the asset is available to more than one employee or director at the same time - EIM21892
- examples showing how the rules apply in different circumstances - EIM21895