Commentary on Sections Overview Overview Section 419: Gifts and benefits linked to periods of less than 12 months
1182.This section modifies the application of section 418(2) where gifts or benefits are linked to periods of less than 12 months. It is based on section 25(5B) to (5D) of FA 1990.
1183.The section provides, according to the case, for annualising:
	the actual amount of the gift; or
	both the amount of the gift and the value of the benefit(s) associated with the gift.
1184.Only the annualised amount in each case is to be compared with the cash limits given in section 418(2). This prevents periods of less than 12 months being used to exploit the cash limits.
1185.Subsection (8) states the formula for annualising in each case. In the source legislation some of the conditions in the section could overlap, so that more than one condition could apply to the gift(s) and associated benefit(s) concerned. A priority rule is, therefore, provided. See Change 77 in Annex 1.