Section L - Assets Placed at the Employee’s Disposal

Where an asset was first used to provide a benefit before 6 April 1980 the annual value is taken at 10% (not 20%) of its market value when first applied as a benefit. 

As indicated in paragraph 4.3 different rules apply to mobile phones, vans and cars.

If the asset is computer equipment or software, and it is lent to an employee, the first £500 of the value is exempt, provided it is not loaned under arrangements restricted to directors, or on terms that favour them.

Information required

A description of the asset and its annual value plus any expenses incurred, any amount made good, or which has suffered a tax deduction, and the cash equivalent.

Measure of benefit

The annual value is 20% of the market value of the asset when first provided as a benefit. Substitute any hire charges if these exceed the annual value. The charge is reduced for periods when the asset is not available for private use. Expenditure, e.g. in maintaining the asset, is added to the benefit.

Practical points

• Accommodation, cars and vans are chargeable using special rules and are reported in sections D, F, and G respectively (see above).
• An asset generally available for private use attracts a full annual value, tax and Class 1A NICs charge, e.g. a company-owned television used by an employee in their home.
• Most assets provided for business purposes are exempt from both tax and Class 1A NICs even if insignificant private use arises.
• Assets used and generally available for business and private purposes attract an annual value, but a partially offsetting tax deduction for the business use may be available to the employee. However, a Class 1A NICs charge arises on the full amount of the benefit (CWG 5 Appendix 1).
• Assets not generally available or placed at the employee’s disposal do not attract a full annual value, but a value is based on the days actually available instead. The advantage is that the tax charge is based on actual usage, e.g. a company aeroplane used for business travel and commercial hire but available for private bookings by the employees only when not otherwise in use. 

P11D Form: Section L

P11D Guide: Section L

Assets placed at the employee’s disposal

Enter the annual value of the use of the asset (or the rent or hire charge if this was greater).

Read paragraph 6.7 of the 480 expenses and benefits guide and paragraph 13 in part 3 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide for further information.

Some employer provided assets (whether on premises occupied by the employer or elsewhere) are exempt from the charge where the private use of the asset is not significant in the context of its use by the employee in performing their duties. Certain types of benefits such as the use of vehicles (including boats and aeroplanes) are excluded from the exemption.

Read chapter 5 of booklet 480 - an expenses and benefits guide for further information. 

Equipment provided to employees with a disability

There is no taxable benefit if an employer provides equipment (for example, a wheelchair or hearing aid) to an employee with a disability to enable the employee to take up or retain work, and where the employee also uses the equipment for significant private use.

Additional HMRC Documentation and external help

Click the links below to go directly to the HMRC website to download or view the PDF or help files listed below.

HMRC P11D Guide

HMRC Booklet 480 (Chapter 6)