Where a charge arises under FA04/Sch15/Para 8 in respect of the whole or part of a year of assessment, an amount equal to the ‘chargeable amount’ is to be treated as income of the individual and subject to income tax, FA04/Sch15/Para 8(3).

The chargeable amount is defined in FA04/Sch15/Para 9(1) as N minus T where

N is the amount of the interest that would be payable for the taxable period if interest were payable at the prescribed rate on an amount equal to the value of the relevant property at the valuation date. The ‘prescribed rate’ is the official rate of interest at the valuation date under ITEPA2004/S181,

The prescribed rate was set at

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