Taxation of Chargeable Gains Act 1992 section 97C

Value of benefit conferred by capital payment made by way of making land available

Section 97C sets out how to calculate the value of a benefit where a capital payment from a non-resident settlement takes the form of making land available for someone's use, rather than a straightforward cash payment.

• The annual benefit is the difference between the rental value of the land and any amounts the recipient actually pays towards rent, repairs, insurance or maintenance
• Rental value is based on the rent that could reasonably be expected on a hypothetical year-to-year letting at arm's length
• The hypothetical letting assumes the tenant pays all taxes, rates and charges, while the landlord bears repair, insurance and maintenance costs
• The rule does not apply where the person conferring the benefit transfers their entire interest in the land to the recipient outright