Valuation date and the value of benefits

Free use of property and interest free loans

Free use of property

If you have the use of a property for free, or for less than it is worth, this is a benefit. You may have to pay tax on it. If you use the property over a number of years, the benefit is regarded as being received on 31 December each year.

Interest free loan

If you receive an interest free loan, this is a benefit and you may have to pay tax on it. The relevant tax date for this benefit is 31 December each year until the loan is paid off. The value of the benefit is the rate of return the funds would generate if they were invested on deposit.

If the loan is repaid during the year, the date of repayment is used to calculate the value of the gift for that year.