Capital Allowances Act 2001

331 Capital value provisions: interpretation

(1) “Capital value” means any capital sum—

(a) including what would have been a capital sum if it had been a money payment (and references to payment are to be read accordingly), but

(b) excluding so much of any sum as corresponds to an amount of rent or profits calculated by reference to that sum under section 34 of ICTA (premiums etc. treated as rent).

(2) “Interest in land” means—

(a) a leasehold estate in the land, whether in the nature of a head lease, sub-lease or under-lease;

(b) an easement or servitude;

(c) a licence to occupy land.

(3) References to granting an interest in land include agreeing to grant any such interest.

(4) In section 329—

• “commercial amount” means the amount that would have been given if the transaction had been at arm’s length,

• “commercial premium” means the premium that would have been given if the transaction had been at arm’s length, and

• “commercial rent” means such rent as may reasonably be expected to have been required in respect of the subordinate interest (having regard to any premium paid in consideration of the grant of the interest) if the transaction had been at arm’s length.

(5) In the application of section 329 to Scotland, references to assignment are to be read as references to assignation.