CG12955 - Capital sums derived from assets: s22(1)(d) TCGA92: use or exploitation of assets
S22(1)(d) TCGA92 deems a disposal when the owner of an asset receives a capital sum, see CG12980, as consideration for its use or exploitation by someone else.
For example, a capital sum paid to a landowner or farmer for the granting of easements or wayleaves for a term of years or perpetuity, see CG70250.
Chaloner v Pellipar Investments Ltd (68 TC 238) provides a useful commentary on the application of s22(1)(d) TCGA92 to consideration for the use or exploitation of land. In that case, see CG70295, the court drew a distinction between:
- a part disposal of the owner바카라 사이트™s interest in the land when a capital sum is received in circumstances where the owner바카라 사이트™s title to land is affected, for example the grant of a lease which gives the lessee the right to actual possession of the land, and
- a deemed disposal within s22(1)(d) TCGA92 when a capital sum is received in circumstances where the owner바카라 사이트™s title to land is unaffected, for example where he remains entitled to full possession of the land.
In certain circumstances and subject to a claim being made, s23 TCGA92 prevents the receipt of a capital sum within se22(1)(d) TCGA92 from being treated as an occasion of a disposal where the receipt is applied in restoring a damaged asset or replacing an asset which has been lost or destroyed, see CG15700+.