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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 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.