SE21645 - Benefits: assets transferred to a director or employee: asset transferred before it has been used or depreciated
Section 156(1) and Section 156(2) ICTA 1988
If a person transfers an asset to a director or employee or a member of his family or household by reason of his employment before the asset has depreciated or been used the amount chargeable is:
- the greater of
- the expense incurred by that person in connection with the provision of the asset or
- the second-hand value of the asset in the hands of the employee if it is chargeable under Section 19(1)1 ICTA 1988 ( SE00540)
LESS
- any amount made good ( SE21120).
This rule also applies to the transfer of any unused trading
stock of the employer.
The examples at
SE21646 and
SE21647 illustrate how the rules
work.
