Chapter 3 - 2.7 - Assets Lent for Private Use

Question 1

What happens when an employer lends an employee an asset other than a car or van for the employee’s private use (e.g furniture in living accommodation provided by the employer)?

Answer 1

A benefit arises

Question 2

What does the value of the benefit depend on?

Answer 2

Whether the employer owns or rents the asset

Question 3

If the employer owns the asset, what is the benefit?

Answer 3

Benefit = annual value:
20% x market value when first provided for private use

Question 4

If the employer rents the asset, what is the benefit?

Answer 4

The higher of:
- annual value
- rent paid by employer

Question 5

What should you remember to do if the benefit is only used for half the year?

Answer 5

Time apportion

Question 6

What should you deduct from the value of the benefit?

Answer 6

Any amount contributed by the employee

Question 7

When is there no benefit?

Answer 7

If private use is not significant, e.g using a work laptop for private email

Question 8

What assets are exempt from this?

Answer 8

Mobile phones and bicycles