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I am a bit confused with the wording on taxable benefits for gifts of assets.
It is said on the note that Tax written down value is market value of the asset when first made available to the employee less the benefit assessed on the employee during the time he had the use of it.
However, when dealing with an example 3, in the online lecture (employment income part 2), it said that Gerald’s employer purchased a TV on the 1/7/15 and gave to Gerald on 6/4/16.
You have calculated the benefit assessed on Gerald during the time he had used as 10 months.Isn’t that period the time that Gerald’s employer had used of it not Gerald?
Thank you very much for all great lectures!
Looking forward to hear back from you.In the example the employee has the private use of the asset purchased by the employer from 1 June to 6 April, a period of 10 months at which point the asset is then transferred to the employee giving rise to the additional benefit on the asset transfer.
The company owns the asset during the 10 month period but it is the employee who has the use of it during that period hence giving rise to a taxable benefit
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