SE13360 - Termination payments and benefits: Section 148 ICTA 1988: benefit of living accommodation provided on or after 6 April 1998: "cash equivalent": Method B

Paragraph 12(1)(b) Schedule 11 and Section 596B(4)-(6) ICTA 1988

Following SE13340, you have concluded that a “relevant person” did not hold the necessary “estate or interest” in the accommodation.

The calculation of the additional sum is then:

• take the “cost of providing the accommodation” from SE13330

less

• £75,000.

Then multiply the result by

• the “appropriate percentage”. This is linked to the official rate of interest prescribed by the Treasury (see SE26104). The appropriate percentage for any year is the rate in force at 6 April of that year less
• any sum made good by the recipient of the benefit to the provider of the accommodation (usually rent)

As SE13330 explained, the sum you have calculated must now be added to the charge calculated under SE13330 in order to arrive at the “cash equivalent” of the benefit.