Section 742D | Value of benefit provided by making movable property available ^F1

From legislation.gov.uk

16 September 2026

(1)The value of the benefit provided by 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 provided to P—^F1

Formula

(\frac{CC \times R \times 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 providing 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 the movable property means an amount equal to the total of—^F1

(a)the amount which is the greater of—^F1

(i)the amount or value of the consideration given for the acquisition of the movable property by, or on behalf of, the person (A) providing the benefit, and^F1

(ii)its market value at the time of that acquisition, and^F1

(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.^F1

(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.^F1

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.^F1