Finance Act 1980

49 Cash equivalent of certain benefits

(1) Section 63 of the [1976 c. 40.] Finance Act 1976 (cash equivalent of certain benefits) shall be amended as follows.

(2) After subsection (3) there shall be inserted—

“(3A) Where the asset referred to in subsection (3) above is not a car and before the transfer a person (whether or not the transferee) has been chargeable to tax in respect of the asset in accordance with subsection (4) below, the amount which under subsection (3) above is deemed to be the cost of the benefit shall (if apart from this subsection it would be less) be deemed to be—

(a) the market value of the asset at the time when it was first applied (by those providing the benefit in question) for the provision of any benefit for a person or for members of his family or household, by reason of his employment, less

(b) the aggregate of the amounts taken into account as the cost of the benefit in charging tax in accordance with subsection (4) below in the year or years up to and including that in which the transfer takes place.”

(3) In subsection (5)(c) for the words " 10 per cent.“there shall be substituted the words ” 20 per cent. ".

(4) This section has effect in relation to assets first applied after 5th April 1980 by those providing the benefit in question in the provision of any benefit for a person, or for members of his family or household, by reason of his employment.