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If an employer gives an asset to an employee (ie the employer transfers ownership of the asset), a taxable benefit arises. Examples of assets that could be transferred to employees are computers, company cars and office furniture. These rules apply equally to employees and directors, therefore all references to employees in this note include directors. If an asset is made available to an employee without transfer of ownership, different rules apply, see the Assets ― made available to an employee guidance note.

With any employment reward, if the asset is provided or transferred by a third party, rather than the employer, it is worth considering whether the disguised remuneration provisions in ITEPA 2003, Pt 7A, ss 554A–554Z21 apply, as those rules have priority over most of the other rules for taxing employment income. The rules are discussed in detail in the Disguised remuneration ― overview guidance note.

There are three possible types of asset transfers one could come across:

1. •

   transfer of a new asset (ie unused and undepreciated)

2. •

   transfer of a used or