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

Leases at rents — holding over and tacit relocation

21.—(1) Subject to paragraph (2), where—

(a) the market value of a lease to which Article 18(1)(a) or (b) applies has, in the computation for the purposes of Article 19 of the 1994 Order of any gain accruing or regarded as accruing on the disposal constituted by the grant of the lease, been determined in accordance with Article 18, or if the case so required, that Article and Article 20; and

(b) following the expiry of the lease the lessee or, if the lessee is a company, another member of the lessee’s group, remains in occupation of the land, or, if the lessee is a company, another member of that group enters into such occupation;

the market value shall, in relation to each disposal period in all or part of which the lessee or, if the lessee is a company, another member of the lessee’s group remains in such occupation, be redetermined, by reference to the stated term of the lease as extended by the actual period of occupation since its expiry.

(2) Where—

(a) before the beginning of the levy period a lease under which a rent is payable has been granted out of relevant land or a relevant estate in land; and

(b) following the expiry during the levy period of the stated term of the lease the lessee or another member of the lessee’s group remains in occupation or enters into occupation of the land which is the subject of the lease;

the disposal constituted by the grant of the lease shall be regarded as taking place on the date following the expiry of the stated term, in consideration of a sum equal to what would have been the market value of the lease if it had commenced on the date following the expiry of the stated term; and such market value shall be determined in accordance with Article 18, by reference to the actual period of occupation beginning with that date (and shall be redetermined, if necessary, in relation to each disposal period during which the actual period of occupation continues).

(3) In this Article “group”, in relation to a lessee, means a group of companies formed by—

(a) the lessee;

(b) any company or other person of which the lessee is an effective subsidiary;

(c) any company which is an effective subsidiary of the lessee;

(d) any company which is an effective subsidiary of any company or other person of which the lessee is an effective subsidiary;

and the explanation of “effective subsidiary” in the definition of “group” in Article 2(1) shall apply for the purposes of the definition in this paragraph as it applies for the purposes of that definition.