PART IIITREATMENT OF CAPITAL

Capital jointly held27

1

Where a resident and one or more other persons are beneficially entitled in possession to any capital asset except any interest in land—

a

they shall be treated as if each of them were entitled in possession to an equal share of the whole beneficial interest in that asset; and

b

that asset shall be treated as if it were actual capital.

2

Where a resident and one or more other persons are beneficially entitled in possession to any interest in land—

a

the resident’s share shall be valued at an amount equal to the price which his interest in possession would realise if it were sold to a willing buyer, less than 10 per cent and the amount of any incumbrance secured solely on his share of the whole beneficial interest; and

b

the value of his interest so calculated shall be treated as if it were actual capital.