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HMRC internal manual

Employment Income Manual

Particular benefits: assets placed at the disposal of a director or employee: asset unavailable for part of a year

Section 204 ITEPA 2003

Note: This page explains HMRC’s approach to assets made available without transfer for tax years 2016 to 2017 and earlier. For tax years 2017 to 2018 onwards, see EIM21888.

Where an asset is not available for part of a year, the annual value of its use has to be apportioned (section 204 ITEPA 2003).

For instance, if in this example the yacht is only made available to the director from 6 October, the chargeable benefit is:

  • one half (6/12 months) of the annual value of its use plus
  • expenditure on the asset by the person providing it from 6 October to the following 5 April less
  • any amount made good by the director.