EIM21630 – Particular benefits: assets placed at the disposal of a director or employee

Section 205(1) ITEPA 2003

Directors and employees often have an asset placed at their disposal without ownership of the asset being transferred to them. If that is a benefit to them rather than a fair bargain (see EIM21004), there are special rules (see EIM21631) for determining the value of the benefit to be charged, unless the employment is an excluded employment (see EIM20007).

For example, a company may own a yacht that is available for private use by the directors or their families.

The special rules apply if:

• the asset is placed at the disposal of the director or employee (or their family) or
• the asset is in fact used by the director or employee (or their family).
• Where the asset is a car or van these special rules do not apply. The rules for vans are at EIM22051 onwards and those for cars are at EIM23001 onwards.