TNAG-2422-FCO40-3524-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 166

Income and Corporation Taxes Act 1988

(11) In this section-

c. 1

"the appropriate percentage" means the rate prescribed by the Treasury under section 160(5) as at the beginning of the year of assessment in question;

"property", in relation to any living accommodation, means the

property consisting of that accommodation;

“market value”, in relation to any property, means the price which that property might reasonably be expected to fetch on a sale in the open market with vacant possession. no reduction being made, in estimating the market value, on account of any option in respect of the property held by the employee, or a person connected with him, or by any of the persons mentioned in subsection (7) above; and

"tenancy" includes a sub-tenancy;

and section 839 shall apply for the purposes of this section.

147. Section 145 shall not apply in relation to the occupation of Chevening House or any other premises held on the trusts of the trust instrument set out in the Schedule to the Chevening Estate Act 1959 by a person nominated in accordance with those trusts.

PART V

129

Occupation of Chevening House.

1959 c. 49.

Payments on retirement, sick pay etc.

retirement or removal from office or employment.

148.—(1) Subject to the provisions of this section and section 188. tax __Payments on shall be charged under Schedule E in respect of any payment to which this section applies which is made to the holder or past holder of any office or employment, or to his executors or administrators, whether made by the- person under whom he holds or held the office or employment or by any other person.

(2) This section applies to any payment (not otherwise chargeable to tax) which is made, whether in pursuance of any legal obligation or not. either directly or indirectly in consideration or in consequence of, or otherwise in connection with, the termination of the holding of the office or employment or any change in its functions or emoluments, including any payment in commutation of annual or periodical payments (whether chargeable to tax or not) which would otherwise have been so made.

(3) For the purposes of this section and section 188, any payment made to the spouse or any relative or dependant of a person who holds or has held an office or employment, or made on behalf of or to the order of that person, shall be treated as made to that person, and any valuable consideration other than money shall be treated as a payment of money equal to the value of that consideration at the date when it is given.

(4) Any payment which is chargeable to tax by virtue of this section shall be treated as income received on the following date, that is to say——

(a) in the case of a payment in commutation of annual or other periodical payments, the date on which the commutation is effected; and

(b) in the case of any other payment, the date of the termination or

change in respect of which the payment is made;

E

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