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HMRC internal manual

Employment Income Manual

Asset made available without transfer to a director or employee:

Section 205 and 205A ITEPA 2003

How do the new and old rules compare?

From 6 April 2017 the rules will apply if: Up to 6 April 2017 the rules will apply if:
The asset is made available to the director or employee (or their family or household) for private use.  The asset is placed at the disposal of or is used by the director or employee (or their family or household).
For assets other than land, the value of the asset is 20% of the market value of the asset when first used. For assets other than land, the value of the asset was 20% of the market value of the asset when first used.
There are specific rules that state how to work out the cash equivalent of the asset if it is used for both private and business purposes. There were no specific legislative rules that explained how to work out the cash equivalent if it is used for both private and business purposes.
The same chargeable amount is used as the basis for calculating the tax and Class 1A NICs even if the asset is used for both private and business purposes. There were different chargeable amounts of income tax and Class 1A NICs if the asset was used for both private and business purposes.