Asset made available without transfer to a director

Hello, I am seeking clarification on EIM21895 - Example 3 (https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21895). The example states the jet is used for business on 20 days of the year, and the presumption seems to be that on ALL other days of the year the jet was "available for use" by the director and should incur a tax charge on that basis, even if they never once used it! Would the same reasoning apply if a construction business had tools that were only used Monday to Friday and not used by anyone on weekends; would the presumption be that they were "available for use" by the director on weekends, and so result in a taxable benefit? What action could a sole director and employee have taken to demonstrate that company assets are not for private use, if that is the case as a matter of fact? Thanks

Hi,

Yes, this would fall under the same scenario. You can see further guidance here:

EIM21880 - Asset made available without transfer to a director or employee: when it applies

Thank you.

Thank you Admin 19, Follow-up question, can the exception to ‘made available for private use’ mentioned in EIM21880 apply for the case of a single director company? Can a director prohibit their own use of the company assets, and not use the assets, such that the exception applies? I am thinking specifically where the 'employee/director' and the 'company' are the same person. Otherwise I'm worried a tax charge would be created for all company assets in any day (including weekends) where those assets are not used by the company. If the company has a printer, tax would be due for any day the printer is not used, based on the annual value of the printer and 'availability for use' of the director. Thanks

Hi
Under EIM21880, the legislation allows for an exception to the ‘made available for private use’ rule.
This exception only applies if the terms under which the asset is made available prohibit private use and no private use is made of the asset.
Thankyou.