Taxation of Chargeable Gains Act 1992 section 97B

Value of benefit conferred by capital payment made by way of making movable property available

Section 97B sets out how to calculate the taxable value of a benefit where a trust makes movable property (such as artwork, jewellery, or a yacht) available for someone to use, without transferring ownership of that property.

• The annual benefit is calculated using the formula CC × R × D / Y − T, which applies the official rate of interest to the capital cost of the property, pro-rated for the number of days it is made available, less any payments made by the recipient
• The capital cost is the higher of the acquisition cost and the market value at the time of acquisition, plus any expenditure incurred to enhance the property's value
• If the official rate of interest changes during the period the property is available, a weighted average rate is used based on the number of days each rate was in force
• Movable property means any tangible movable property other than money, so it covers items such as vehicles, boats, art, furniture, and similar physical assets