Section 97B — Taxation of Chargeable Gains Act 1992: Value of benefit conferred by capital payment made by way of making movable property available

Value of benefit conferred by capital payment made by way of making movable property available 97B 1 For the purposes of section 97(4), the value of the benefit conferred by a capital payment consisting of making movable property available, without any transfer of the property in it, to a person (P) is, for each tax year in which the benefit is conferred on P— ( CC × R × D Y ) − T where— CC is the capital cost of the movable property on the date when the property is first made available to P in the tax year, D is the number of days in the tax year on which the property is made available to P (the relevant period), R is the official rate of interest for the relevant period (but see subsection (3)), T is the total of the amounts (if any) paid in the tax year by P—

to the person conferring the benefit, in respect of the availability of the movable property, or so far as not within paragraph (a), in respect of the repair, insurance, maintenance or storage of the movable property, and Y is the number of days in the tax year.

2 In subsection (1), in the meaning of CC, the “capital cost” of movable property means an amount equal to the total of—

a the amount which is the greater of—

i the amount or value of the consideration given for the acquisition of the movable property by, or on behalf of, the person (A) conferring the benefit, and ii its market value at the time of that acquisition, and b the amount of any expenditure wholly and exclusively incurred by, or on behalf of, A for the purpose of enhancing the value of the movable property.

3 If the official rate of interest changes during the relevant period, then in subsection (1) R is the average official rate of interest for the period calculated as follows. Step 1 Multiply each official rate of interest in force during the relevant period by the number of days when it is in force. Step 2 Add together the products found in Step 1. Step 3 Divide the total found in Step 2 by the number of days in the relevant period.

4 In subsections (1) and (2), “ movable property ” means any tangible movable property other than money.