Finance Act 2003

5 (1) This paragraph applies where the lease contains provision for adjustment of the rent, as from a specified date or dates, to reflect current market values. E+W+S+N.I.

(2) In this paragraph—

(a) a “rent review” means an adjustment in pursuance of such provision, and

(b) references to the date of a rent review are to the date from which any such adjustment has or would have effect.

(3) If the lease provides for a rent review on or before the end of the second year of the lease, section 51 (contingent, uncertain or unascertained consideration) applies in relation to the possibility that the rent may be adjusted on that review.

(4) If the lease provides for a rent review after the end of the second year of the lease, the annual rent payable after that review—

(a) is determined without regard to the possibility of an adjustment on that review, and

(b) is assumed to be the same as the annual rent payable over the year preceding the first rent review or, if the period from the beginning of the term of the lease to the date of the first rent review is less than a year, over that period.