S.L. 123.55 Art. 24Annual value of the private use of property.

(1) Subject to the other provisions of this rule, the annual value of the benefit referred to in rule 20 shall be determined as follows:

(a) where the property is owned by the provider of the benefit or by a related person, the said value shall be:

(i) in the case of immovable property, 5% of the higher of the market value and the cost of the property: Provided that where the property is held under a title of emphyteusis, the said value shall be the higher of:

(A) 5% of the market value; and

(B) the total of:

- 5% of the cost of the property, and

- an amount equivalent to the relative annual ground rent;

(ii) in the case of movable property, 12% of the higher of the market value and the cost of the property;

(b) where the property is leased to the provider of the benefit and is owned by a person who is not a related person the said value shall be the rent payable for the year in question: provided that when the property is sublet to the provider of the benefit by a related person the said value shall be the amount of the rent payable for the year in question to a non-related person.

(2) For the purpose of sub-rule (1) a related person means:

(a) in relation to a company:

(i) an associated company; or

(ii) a person who holds, directly or indirectly, shares in that company;

(b) in relation to a partnership:

(i) a company or a partnership that is owned or controlled, directly or indirectly, as to more than 50% by the partners of that partnership; or

(ii) a person who owns, directly or indirectly, an interest in that partnership;

(c) in relation to an individual:

(i) a member of his family; or

(ii) a company or a partnership in which he, directly or indirectly, holds a share or owns an interest.

(3) When the provider of the benefit incurs or reimburses expenses connected with the private use of property including, but not limited to, expenses -

(a) for the maintenance, repair, upkeep, licences or insurance of the property;

(b) for the settlement of bills for services, facilities or amenities provided in the property;

(c) representing a share of common expenses or fees charged in connection with a bloc of properties of which that property forms part, the value of the benefit shall, for any month in which any such expenses are incurred or reimbursed, be increased by the amount of the said expenses.

(4) Notwithstanding the foregoing provisions of this rule, when the benefit referred to in rule 20 consists of accommodation in a hotel or a guest-house, the said value shall be the amount chargeable by that hotel or guest-house for a year at the rate charged to guests therein for similar accommodation.

(5) Where the beneficiary pays, during any calendar year, rent for the private use of property, the annual value of the benefit for that year shall be reduced by the amount of the rent so paid in that year.