Section 97C | Value of benefit conferred by capital payment made by way of making land available ^F1

(1)For the purposes of section 97(4), the value of the benefit conferred by a capital payment consisting of making land available for the use of a person (P) is, for each tax year in which the benefit is conferred on P, the amount by which—

(a)the rental value of the land for the period of the tax year during which the land is made available to P, exceeds

(b)the total of the amounts (if any) paid in the tax year by P—

(i)to the person conferring the benefit, in respect of the availability of the land, or

(ii)so far as not within sub-paragraph (i), in respect of costs of repair, insurance or maintenance relating to the land.

(2)Subsection (1) does not apply in the case where the person conferring the benefit transfers the whole of the person's interest in the land to P.

(3)In subsection (1) “the rental value” of the land for a period means the rent which would have been payable for the period if the land had been let to P at an annual rent equal to the annual value.

(4)For the purposes of subsection (3) “the annual value” of land is the rent that might reasonably be expected to be obtained on a letting from year to year if—

(a)the tenant undertook to pay all taxes, rates and charges usually paid by a tenant, and

(b)the landlord undertook to bear the costs of the repairs and insurance and the other expenses (if any) necessary for maintaining the property in a state to command that rent.

(5)For the purposes of subsection (4) that rent—

(a)is to be taken to be the amount that might reasonably be expected to be so obtained in respect of a letting of the land, and

(b)is to be calculated on the basis that the only amounts that may be deducted in respect of services provided by the landlord are amounts in respect of the costs to the landlord of providing any relevant services.

(6)In subsection (5) “relevant service” means a service other than the repair, insurance or maintenance of the property.