Assets placed at the disposal
of an employee: special rules
Where an asset is placed at the disposal of an employee, the value of the benefit charged to tax and liable for Class 1A NICs is:
- the annual value of the use of the asset or, if greater, the rent or hire charge
- any amount spent (except on acquiring or hiring the asset) by the person making the asset available, for example the running costs of the asset
- any amount made good by the employee
plus
less
If the asset is also used in the business or by other employees the benefit must be apportioned.
If the asset is used by the employee for business he or she may be entitled to tax relief.
The special rules do not apply to car benefit, van benefit or mobile telephones (EIM21780). Nor do they apply to living accommodation.
If you want more detailed guidance on these special rules look at EIM21631 and for an example of the special rules when an asset is placed at the disposal of a director see EIM21633.
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