Commentary

I12.407 The charge—land and chattels

IHT, trusts and estates

I12.407 The charge—land and chattels

I12.407 The charge—land and chattels

Where the charge applies, a 'chargeable amount' computed in accordance with either paras 4 and 5 (in the case of land) or para 7 (in the case of chattels) will be deemed to form part of the income of the chargeable person.

With regard to land, the provisions operate to impute a charge equal to a proportion of the annual rental value of the relevant land to the chargeable person ('the appropriate rental value') less the deduction discussed below. The appropriate rental value is found by multiplying the rental value of the relevant land by the fraction found by dividing one of the following amounts by the value of the land at the 'valuation date':

  1.  

    (i)     where the disposal condition is met, the value as at the valuation date of the interest in the relevant land disposed of by the chargeable person; or, where the relevant land represents the property originally disposed of by the chargeable person, such part of the value of the relevant land at the valuation date as can be attributed to the property originally disposed of by him; or

  2.  

    (ii)     where the contribution condition is met, such part of the value of the relevant land at the valuation date as can be attributed to the

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