SCHEDULE 6LEASES
PART 3RENT AND OTHER CONSIDERATION
Adjustment of tax where rent determined on reconsideration date
I112
1
Where, in the case of a land transaction relating to a lease—
a
section 19 or 20 (contingent, uncertain or unascertained consideration) applies to the land transaction by virtue of paragraph 10, and
b
the reconsideration date is reached,
the buyer in the transaction must, on the reconsideration date, determine the rent paid or payable in respect of the first 5 years of the term of the lease.
2
Paragraphs 13 and 14 make provision for the adjustment of tax payable in respect of a land transaction (and of any transaction linked to such a transaction) as a result of such a determination.
3
For the purposes of this paragraph and paragraphs 13 and 14, the reconsideration date is —
a
the date falling at the end of the fifth year of the term of the lease, or
b
any earlier date on which the amount of rent payable in respect of the first 5 years of the term of the lease ceases to be uncertain.
4
For the purposes of sub-paragraph (3)(b) and paragraph 13(2), the amount of rent payable ceases to be uncertain when—
a
in the case of contingent rent, the contingency occurs or it becomes clear that it will not occur;
b
in the case of uncertain or unascertained rent, the amount becomes ascertained.