EIM21882 - Asset made available without transfer to a director or employee: How to calculate the cash equivalent of the benefit (step 1)

Sections 205, 205A and 205B ITEPA 2003

From 6 April 2017 only

There are three steps to calculating the cash equivalent of the benefit of the use of an asset made available for private use.

Step 1: Calculate the annual cost of the benefit - (EIM21878)

Assets that are not land: section 205(2) ITEPA 2003 (EIM21885)

Land - section 207 ITEPA 2003 (EIM21885)

(The following steps do not apply to land)

Step 2: Deduct any amounts for days when the asset is unavailable for private use - section 205A ITEPA 2003 - EIM21888 and EIM21890

Step 3: Apply the sharing rules (if appropriate) - section 205B ITEPA 2003 - EIM21892