Section 97A — Taxation of Chargeable Gains Act 1992: Value of benefit conferred by capital payment made by way of loan

Value of benefit conferred by capital payment made by way of loan 97A 1 For the purposes of section 97(4), the value of the benefit conferred on a person (P) by a capital payment made by way of loan to P is, for each tax year in which the loan is outstanding, the amount (if any) by which—

a the amount of interest that would have been payable in that year on the loan if interest had been payable on the loan at the official rate, exceeds b the amount of interest (if any) actually paid by P in that year on the loan.

2 In this section and section 97B the “ official rate ”, in relation to interest, means the rate applicable from time to time under section 178 of the Finance Act 1989 for the purposes of Chapter 7 of Part 3 of ITEPA 2003.