Finance Act 2022

Adjusted value of assets

3 (1) To determine the adjusted value of an asset, take the following steps—

• Step 1 - value the asset

  Determine the underlying value of the asset.

• Step 2 - apply reduction to reflect potential losses as a result of taking steps

  Deduct an amount equal to 10% of the underlying value from that value.

(2) The underlying value of the asset is the greater of—

(a) the fair value of the asset immediately before the first disqualifying step was taken in relation to it, and

(b) the amount or value of any consideration paid directly or indirectly in connection with, or otherwise in consequence of, the taking of the disqualifying steps (whether paid to the person taking them or to any other person).

(3) Where it is reasonable to conclude that an asset was held partly for qualifying purposes in relation to the public interest business in question and partly for other purposes, reduce the underlying value so that it reflects the proportion of the asset that can be attributed (on a just and reasonable basis) to its being held for qualifying purposes in relation to the business.