SE13340 - Termination payments and benefits: Section 148 ICTA 1988: benefit of living accommodation received on after 6 April 1998: “cash equivalent”: "cost of providing" the accommodation is more than £75,000

Paragraph 12(1)(b) Schedule 11 and Section 596B(1)(b) & (4) ICTA 1988

Following SE13330, you have calculated the “cost of providing the accommodation” as more than £75,000.

To calculate the “cash equivalent” of this benefit you must add a sum to the charge calculated under SE13338.

To calculate this additional sum, follow these steps:

• find out when the receiver of the benefit first occupied the accommodation, then
• calculate what is the period of 6 years before that date. For example, if the receiver first occupied on 1 April 1999, look at the period 1 April 1993 to 31 March 1999, then
• establish whether any “relevant person” (see SE13331) held any “estate or interest” (see SE13331) in the property throughout those 6 years. Different persons and different interests must be aggregated for this purpose. For example, if three different people held four different interests over the 6 years but they were all “relevant persons” and “estates or interests” in any combination, then your conclusion would be that a “relevant person” did hold an “estate or interest” in the property throughout those 6 years.

If a “relevant person” did hold such an “estate or interest” throughout those 6 years, calculate the additional sum using method A in SE13350

If a “relevant person” did not hold such an “estate or interest” throughout those 6 years, calculate the additional sum using method B in SE13360