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HMRC internal manual

Employment Income Manual

Particular benefits: assets placed at the disposal of a director or employee: asset also used in the business or by other employees

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 EIM21892.

An apportionment of the full amount of a benefit is required if an asset is made available to two or more directors and employees or is provided partly to the employee as a benefit and is also used partly by the employer in its business (see EIM21200).

For example, if a yacht is made available to two directors and they agree that its availability is shared equally by them, apportion one half of the benefit to each of them. Similarly if the yacht is used partly for business purposes, such as hiring to customers, a proper proportion of the full annual value of its use would not be chargeable.