The Ports (Levy on Disposals of Land, etc.) Order (Northern Ireland) 1997

Leases at rents — grant

18.—(1) For the purposes of Article 19 of the 1994 Order—

(a) on the grant of a lease to which this sub-paragraph applies, the consideration for the disposal constituted by the grant shall in the computation of any gain accruing on the disposal be deemed to be equal to what would be the market value to the lessee of the lease at the time of the grant; and

(b) on the grant of a lease to which this sub-paragraph applies (referred to in this sub-paragraph as a “sub-lease”)—

(i) the provisions of sub-paragraph (a) and of Article 26(3) shall be taken to have applied on the grant of the lease out of which the sub-lease is granted; and

(ii) the consideration for the disposal constituted by the grant of the sub-lease shall in the computation of any gain accruing on the disposal be deemed to be equal to what would be the market value to the sub-lessee of the sub-lease at the time of the grant; and paragraph 4(2)(b) of Schedule 8 to the 1992 Act shall not apply in respect of the disposal.

(2) For the purposes of computing the amount of gain which accrues or is regarded as accruing on a disposal to which paragraph (1)(a) or (b) applies, there shall be deducted from the amount which would apart from this paragraph be the amount of the gain accruing or regarded as accruing an amount in respect of corporation tax calculated in accordance with paragraph (3).

(3) The amount in respect of corporation tax referred to in paragraph (2) shall be equal to the product of A and B where—

• A is a percentage equal to the highest rate of corporation tax on income for the financial year in which the disposal takes place; and

• B is the amount which would, but for paragraph (2), be the amount of the gain accruing or treated as accruing on the disposal less the amount of any premium actually paid on or in connection with the disposal.

(4) Except in a case mentioned in section 17(1)(a) or (b) of the 1992 Act (in which case that section shall apply for the purposes of Article 19 of the 1994 Order), the market value of a lease to the lessee or of a sub-lease to the sub-lessee shall for the purposes of paragraph (1)(a) or (b) be the amount of the premium that could reasonably be expected to be required under or in connection with the lease or sub-lease if no rent were payable thereunder.

(5) In determining (for the purposes of paragraph (4)) the amount of the premium that could reasonably be expected to be so required, regard shall be had to the rent actually payable and to the amount of any premium actually required under or in connection with the lease or sub-lease.

(6) Paragraph (1)(a) applies to a lease under which a rent is payable of land which is relevant land or is land in which a relevant estate subsists, granted by a chargeable company or another member of that company’s group (that company or other member not itself being a tenant of the land), and paragraph (1)(b) applies to a lease under which a rent is payable of land which is relevant land or is land in which a relevant estate subsists, granted by a chargeable company or another member of that company’s group (that company or other member being itself a tenant of the land).