The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
If an employer gives an asset to an employee (ie the employer transfers ownership of the asset), a taxable benefit arises. Examples of assets that could be transferred to employees or directors are computers, company cars and office furniture. These rules apply equally to employees and directors, therefore all references to employees in this note include directors.
There are three possible types of asset transfers one could come across:
The cash equivalent of the benefit is different depending on which of these three situations applies. Where the asset transferred to the employee is a car or a computer the calculation of the rules are altered (see the exceptions below).
The usual rule is that the cash equivalent of the benefit is the greater of:
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