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 (except for 2015/16 and earlier, 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 start at EIM22700 and those for cars at EIM23000.