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this is the qtn
claude was provided with a home entertainment system for his personal use this was purchased by array ltd on 6 jan 2025 for 3200. the market value of the home systmen on 5 april 2025 was 2400.
in solution without taking market value they hv taken 3200 for calculation. nd the reason they gave is that as the asset is not provided to employee we take cost instead of market value
well as per the rule we take higher of 20% of market value when provided to employee nd rent [aid by employer right.
can u clarify here y they havent taken market value for benefit calculation
We use the market value of the asset when it was first provided for private use to ANY employee, so assuming that the asset was first provided on 6 January 2025, the market value at that date was the cost of £3,200. This figure will remain constant for the usage calculation for as long as ANY employee uses is for private use. The fact that the market value will change over time is irrelevant.
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