Textual Amendments
F1Pt. 4A (ss. 393A-393W) inserted (with effect as mentioned in s. 67 of the amending Act) by Finance Act 2001 (c. 9), s. 67, Sch. 19 Pt. 1
Modifications etc. (not altering text)
C1Pt. 4A (ss. 393A-393W) modified (prosp.) by Proceeds of Crime Act 2002 (c. 29), ss. 448, 458(1), Sch. 10 para. 22, 25
(1)References in this Part to the proceeds from a balancing event are to the amounts received or receivable in connection with the event, as shown in the Table—
TABLE: BALANCING EVENTS AND PROCEEDS
| 1. Balancing event | 2. Proceeds from event |
|---|---|
| 1. The sale of the relevant interest. | The net proceeds of the sale. |
| 2. The grant of a long lease out of the relevant interest. | If the capital sum paid in consideration of the grant is less than the commercial premium, the commercial premium. |
| In any other case, the capital sum paid in consideration of the grant. | |
| 3. The coming to an end of a lease, where a person entitled to the lease and a person entitled to any superior interest are connected persons. | The market value of the relevant interest in the flat at the time of the event. |
| 4. The death of the person who incurred the qualifying expenditure. | The residue of qualifying expenditure immediately before the death. |
| 5. The demolition or destruction of the flat. | The net amount received for the remains of the flat, together with— |
| (a) any insurance money received in respect of the demolition or destruction, and | |
| (b) any other compensation of any description so received, so far as it consists of capital sums. | |
| 6. The flat ceases to be a qualifying flat. | The market value of the relevant interest in the flat at the time of the event. |
(2)The amounts referred to in column 2 of the Table are those received or receivable by the person who incurred the qualifying expenditure.
(3) In Item 2 of the Table “ ” means the premium that would have been given if the transaction had been at arm’s length. ]