Textual Amendments
F1Pt. 12A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 4 para. 2 (with Sch. 9 paras. 1-9, 22)
(1)Subsection (2) applies—
(a)for the purpose of making a comparison under rule 4 of section 681AD(3) if section 681AD has effect because of section 681AB(1), and
(b)for the purpose of making a comparison under section 681AE(3) if section 681AE has effect because of section 681AB(2).
(2)The commercial rent is the rent which might be expected to be paid under a lease, of the land in respect of which the payment mentioned in section 681AB(1)(b) or (2)(b) is made, which—
(a)was negotiated in the open market when the rentcharge or other transaction mentioned in section 681AB(1)(b) or (2)(b) was effected,
(b)is a tenant's repairing lease, and
(c)is of an appropriate duration.
(3)A tenant's repairing lease is a lease where the lessee is under an obligation to maintain and repair the whole (or substantially the whole) of the premises comprised in the lease.
(4)To see whether a lease is of an appropriate duration, take the period over which payments are to be made under the rentcharge or other transaction, and—
(a)if that period is 200 years or more (or the obligation to make the payments is perpetual) an appropriate duration is 200 years, or
(b)if that period is less than 200 years, an appropriate duration is the same duration as that period.]