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A close company (with three directors, all related) purchased a helicopter for £105,000 in July 2007. Only one director of the company has a licence to fly the helicopter. It will be used for business journeys and a log of journeys will be kept. However, I know that it will also be used privately.
A close company (with three directors all related) purchased a helicopter for £105 000 in July 2007. Only one director of the company has a licence to fly the helicopter. It will be used for business journeys and a log of journeys will be kept. However I know that it will also be used privately.
Under ITEPA 2003 s 205(2) and (3) it states the benefit is calculated at 20% of the annual value of the asset when it was first used plus any current expenditure. Is the benefit in kind charge calculated on the cost of £105 000? And does expenditure mean fuel insurance repairs etc? Furthermore is the benefit charged at a full 20% or can it be restricted by the number of days that it is used personally by the director?
Any advice from readers...
