A party sends one of their candidates leaflets with a value of £100 to use in the candidate’s campaign. The candidate accepts the leaflets and arranges for them to be delivered to voters.
The first and second tests have been met as the leaflets have been provided for the candidate’s use for free.
The third test has also been met as the difference in value between the commercial value of the leaflets (£100) and what the candidate pays (£0) is over £50.
The fourth test is met as the candidate has arranged for the leaflets to be used on their behalf by arranging the delivery.
The fifth test is met as unsolicited material to electors counts as an election expense.
As all the tests have been met, this is an example of notional spending. The full value of the leaflets provided to the candidate must be reported as notional spending.
Example B
A printer provides a candidate with a quote of £200 to print leaflets to promote the candidate’s campaign. The printer also offers the candidate a 50% non-commercial discount on the order. The candidate pays for the leaflets, accepts the discount, and arranges for the leaflets to be delivered to voters.
The first and second tests have been met as the leaflets have been provided for the candidate’s use at a non-commercial discount of more than 10%.
The third test has also been met as the difference in value between the commercial value of the leaflets (£200) and what the candidate pays (£100) is over £50.
The fourth test is met as the candidate has arranged for the leaflets to be used on their behalf by arranging the delivery.
The fifth test is met as unsolicited material to electors counts as an election expense.
As all the tests have been met, this is an example of notional spending. The candidate must report the amount they paid for the leaflets as a usual payment paid by the agent.
The value of the leaflets provided to the candidate through the discount must be reported as notional spending.