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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

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 the example at EIM21633 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 (see EIM21120).