Income Tax (Earnings and Pensions) Act 2003 section 205A

Deduction for periods when asset unavailable for private use

Section 205A allows a reduction in the taxable benefit charge on an asset made available to an employee, for any days during the tax year when the asset was unavailable for the employee's private use.

• A deduction applies for days before the asset was first made available, after it was last available, or when it was unfit, under repair, unlawful to use, held under a lien by a third party, or used by someone other than the employee or their family
• A day also counts as unavailable if the employee used the asset solely for work duties and made no private use of it that day
• For conditions relating to the asset's physical state, legal status, third-party possession, or non-employee use, the circumstance must apply for more than 12 hours during the day in question
• The deduction is calculated as (U ÷ Y) × A, where U is the number of unavailable days, Y is the number of days in the tax year, and A is the annual cost of the benefit