EIM21875 - Asset made available without transfer to a director or employee:
Section 205 and 205A ITEPA 2003
How do the new and old rules compare?
From 6 April 2017 the rules will apply if: | Up to 6 April 2017 the rules will apply if: |
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The asset is made available to the director or employee (or their family or household) for private use. | The asset is placed at the disposal of or is used by the director or employee (or their family or household). |
For assets other than land, the value of the asset is 20% of the market value of the asset when first used. | For assets other than land, the value of the asset was 20% of the market value of the asset when first used. |
There are specific rules that state how to work out the cash equivalent of the asset if it is used for both private and business purposes. | There were no specific legislative rules that explained how to work out the cash equivalent if it is used for both private and business purposes. |
The same chargeable amount is used as the basis for calculating the tax and Class 1A NICs even if the asset is used for both private and business purposes. | There were different chargeable amounts of income tax and Class 1A NICs if the asset was used for both private and business purposes. |