Where assets belonging to employers are made available to employees or their family, the tax charge on the benefit, usually based on 20% of the market value of the asset when first made available, plus any expenses incurred in connection with the provision of the asset, would arise each year. No apportionment of the benefit charge is made where assets are provided for part of the tax year.
Provisions will be introduced effective from April 2017, to ensure that, when calculating the benefit in kind in respect of assets provided by employers, such benefits are restricted to the period they are made available to employees for private use.
The changes will mean that benefits in kind in respect of the private use of employer assets are restricted to periods of actual use. This will be a welcome change for employees affected.