If an asset is transferred to the employee or a member of their family or household, the first question to be considered is whether the transfer should be taxed as earnings, calculated as the money's worth of the asset. This is normally the second-hand value—see E4.402 for a discussion of 'money's worth'.
Where the asset is one that holds its value, for example an antique or painting, the second-hand value will represent the full economic value of the asset and no further charge is necessary. In many cases, however, the nature of the asset is such that the second-hand value is considerably less than the cost to the employer. This was the case in Wilkins v Rogerson1,
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Web page updated on 17 Mar 2025 17:33