More unnecessary convolution

THE COMPLEXITY UNDERLYING the calculation of the charge under FA 2004 Sch 15 (pre-owned assets legislation) in respect of chattels and intangible assets is demonstrated by John Jeffrey-Cook in his article 'Unnecessary convolution' Taxation 1 September 2005 page 605. John highlights the fact that one must look at various different statutory provisions to ascertain the notional interest rate to be applied in these cases. He points out that in the end one reaches the conclusion that the notional interest rate is the same as that for the benefit-in-kind legislation in ITEPA 2003.

John suggests perhaps with tongue in cheek that it would be simpler for FA 2004 Sch 15 paras 7(2) and 9(1) to provide expressly that N is the amount of interest that would be payable … if interest were payable … at the rate applicable under FA 1989 ...