Use of Company Assets and Tax Implications – What You Need to Know

Having access to company assets, such as helicopters, private aircraft, or other valuable assets, may seem like a great perk. However, recent changes to benefit-in-kind tax rules could make even occasional personal use very expensive. It is crucial to understand the tax implications of the use of company assets to avoid unexpected liabilities.

How Are Company Assets Taxed?

Previously, employees were taxed at 20% of the asset’s value but only for the periods when they had actual use of it. However, the rules have now changed. Employees are charged on the full value of the asset, unless they can prove it was unavailable for personal use.

This means that unless the asset is:

• Being used by another employee, or
• Being used solely for business purposes,

It is considered available to the employee, and they may face a significant tax charge.

Why Occasional Use Can Be Expensive

Even a single trip on a company-owned aircraft or another high-value asset could trigger a tax charge based on the full annual value of the asset. This could result in substantial unexpected costs for the employee.

For example:

• A company helicopter worth £2 million used for one personal trip could result in a taxable benefit charge on the full value.
• Unless it can be shown to be unavailable (e.g., in maintenance or required for business use), HMRC may apply the full tax charge.

How We Can Help

If you use or provide access to company assets, we can help you understand and minimise tax liabilities. At Lewis Brownlee, our tax specialists provide tailored advice to ensure compliance and tax efficiency. So, what are you waiting for? Call us today and let’s see how we can partner in your success!

For guidance on use of company assets and tax implications, visit our contact page to speak with our experts today.