Special rules apply if the qualifying benefit is the transfer of
ownership of an asset from the EBT to an employee and the value of
the asset has fallen in value whilst it was owned by the EBT
(FA03/SCH24/PARA5).
In this situation the amount of the qualifying benefit is the
lower amount on which a charge to income tax and NICs liability
arises, or would arise if the employee had worked in the UK.
| 1/2/2004 | Company contribution to EBT | £30,000 |
| 2/2/2004 | EBT buys a car, cost | £30,000 |
| 1/12/2004 | EBT gives the car to a key employee when its value has fallen to | £25,000 |
The amount of the qualifying benefit is limited to the
£25,000 on which the employee is chargeable to income tax and
on which NICs liability arises.
The balance of £5,000:
