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HMRC internal manual

Employment Income Manual

Particular benefits: assets placed at the disposal of a director or employee: asset used by the employee partly for private purposes and partly for work purposes

Sections 336 and 365(1) 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 EIM21873.

When an asset is available for the private use of a director or employee but it also has to be used in the performance of his duties, the director or employee may be able to get relief for the work use. This is accomplished by treating the value of the benefit as if it were expenditure so that the business proportion can qualify for deduction under Section 336 to 338 ITEPA 2003 (see EIM31620 onwards).

Note that a deduction will not be due if the private and business use of the asset is concurrent, such as a suit of ordinary clothes worn at work (see EIM31660). Only if the use of the asset is at some times exclusively for business, such as a fax machine provided to the employee at home partly for work use, will a part deduction be due (see EIM31661). See example EIM31617.