Part 3

Employment income: earnings and benefits etc. treated as earnings
Chapter 10

Taxable benefits: residual liability to charge

Determination of the cost of the benefit

Deduction for periods when asset unavailable for private use
205A
1
A deduction is to be made under section 205(1C)(b) if the asset mentioned in section 205(1) has been unavailable for private use on any day during the tax year concerned.
2
For the purposes of this section an asset is “unavailable” for private use on any day if—
a
that day falls before the day on which the asset is first available to the employee,
b
that day falls after the day on which the asset is last available to the employee,
c
for more than 12 hours during that day the asset—
i
is not in a condition fit for use,
ii
is undergoing repair or maintenance,
iii
could not lawfully be used,
iv
is in the possession of a person who has a lien over it and who is not the employer, not a person connected with the employer, not the employee, not a member of the employee's family and not a member of the employee's household, or
v
is used in a way that is neither use by, nor use at the direction of, the employee or a member of the employee's family or household, or
d
on that day the employee—
i
uses the asset in the performance of the duties of the employment, and
ii
does not use the asset otherwise than in the performance of the duties of the employment.
3
The amount of the deduction is given by—
U/Y × A
where—
U is the number of days, in the tax year concerned, on which the asset is unavailable for private use,
Y is the number of days in that year, and
A is the annual cost of the benefit of the asset determined under section 205(2).
4
The reference in subsection (2)(a) to the time when the asset is first available to the employee is to the earliest time when the asset is made available, by reason of the employment and without any transfer of the property in it, for private use.
5
The reference in subsection (2)(b) to the time when the asset is last available to the employee is to the last time when the asset is made available, by reason of the employment and without any transfer of the property in it, for private use.
Pt. 3 Ch. 10 excluded (with effect in accordance with reg. 1(2) of the amending S.I.) by The Income Tax (Exemption of Minor Benefits) (Coronavirus) Regulations 2020 (S.I. 2020/1293), regs. 1(2), 2 (with reg. 1(2))
S. 205A modified (12.2.2019) by Finance Act 2019 (c. 1), s. 9(6)-(8)
Ss. 205A, 205B inserted (with effect in accordance with s. 8(5) of the amending Act) by Finance Act 2017 (c. 10), s. 8(3)