SE21615 - Benefits: assets placed at the disposal of a director or employee

Section 156(5) ICTA 1988

Directors and employees within Part V Chapter II ICTA 1988 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 ( SE21004) there are special rules ( SE21616) for determining the value of the benefit to be charged.

For example, a company may own a yacht which 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, mobile telephone or van these special rules do not apply. The rules for vans are at SE22051 onwards, those for cars are at SE23001 onwards and those for mobile telephones are at SE21780.