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The rules relating to charging a benefit where an asset is made available for private use were amended with effect for 2017/18 onwards in order to produce a fairer result by providing for a deduction on account of periods of unavailability and a reduction where use of the asset is shared (see below).

Where the benefit consists of an asset being made available for private use by the employee or a member of the employee's family or household, the annual cost of the benefit is the higher of¹:

1. Ìý

   •ÌýÌýÌýÌý the annual value of the use of the asset, and

2. Ìý

   •ÌýÌýÌýÌý the annual amount of any sums paid by those providing the benefit by way of rent or hire charge,

plus the amount of any additional expense and less a deduction for periods of unavailability. The annual cost may be reduced on account of shared use. Each of these is discussed below.

Note that where an asset is made available for private use it is treated