Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 320: Limited exemption for computer equipment
1344.This section derives from section 156A of ICTA, which provides a limited exemption in respect of computer equipment provided to employees or members of their families or households.
1345.The exemption only applies where the employer provides the computer equipment for the use of the employee (or members of his or her family etc) rather than transferring it to him or her. In a case where the computer is given to the employee to keep, the benefit arising is still chargeable to tax in the normal way.
1346.The exemption is not available in cases where the arrangements to provide computer equipment particularly favour directors. This does not mean that where an employer has provided computer equipment only for directors or their families, because only they have taken up an offer available to all employees, that the exemption cannot apply. The employer’s provision of computer equipment has to be deliberately restricted to directors and their families for the exemption to be withheld. This is covered in section 156A(2) of ICTA, rewritten in this section as subsection (6).
1347.The definition of director in subsection (7)(b) derives from section 168 of ICTA. It is necessary to bring the definition into this section because this provision is not in the benefits code.