ABSTRACT
Thus income is receivable on a periodic basis and is recurring. In taxation terminology, income may be ‘earned’ or ‘unearned’. ‘Earned’ income is that obtained from employment or
In this chapter … • The difference between income and capital sums. • What a years purchase is and why it is used. • The different types of years purchases, how they are calculated and when and why each
is employed. • The difference between remunerative and accumulative rates of interest as applied to
valuation of leasehold interests. • The effects of taxation on leasehold valuations and how these are taken into account. • How a value may be calculated when the duration of the interest depends on the life
expectancy of its owner.
