70(1)In relation to a lease granted after 12th June 1969 and before 25th August 1971, for sections 303 and 304 substitute—U.K.
(1)The following rules apply for determining the effective duration of a lease for the purposes of this Chapter.
Rule 1: Where the terms of a lease include provision for the determination of the lease by notice given by the landlord, the lease is not to be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice so given.
Rule 2: A lease is not to be treated as having been granted for a term longer than one ending on a date before the end of the term for which the lease was granted, if the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond that date.
Rule 3: Where the terms of the lease include provision for the extension of the lease beyond a given date by notice given by the tenant, account may be taken of any circumstances making it likely that the lease will be so extended.
(2)Rule 2 applies by reference to the facts known or ascertainable at the time of the grant of the lease.
(3)In applying the rules, it is assumed that all parties concerned, whatever their relationship, act as if they were at arm's length.
(4)In this section, in relation to Scotland, “term”, where referring to the duration of a lease, means period.”
(2)This paragraph does not apply if the determination is for the purposes of section 281 (sums payable for variation or waiver of [F1terms] of lease).
Textual Amendments
F1Word in Sch. 2 para. 70(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 646(2) (with Sch. 2 Pts. 1, 2)
71(1)In relation to a lease granted before 13th June 1969, for sections 303 [F2and 304] substitute—U.K.
(1)The following rules apply for determining the effective duration of a lease for the purposes of this Chapter.
Rule 1: Where the effective duration of a lease is being determined after the date on which the lease has for any reason come to an end, the duration is taken to have extended from its commencement to that date.
Rule 2: Where the terms of the lease include provision for the determination of the lease by notice given either by the landlord or by the tenant, the lease is not to be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice.
Rule 3: A lease is not to be treated as having been granted for a term longer than one ending on a date before the end of the term for which the lease was granted, if the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond that date.
(2)Rules 2 and 3 are subject to rule 1.
(3)Rules 2 and 3 apply in accordance with circumstances prevailing at the time of the determination.
(4)In this section, in relation to Scotland, “term”, where referring to the duration of a lease, means period.”
(2)This paragraph does not apply if the determination is for the purposes of section 281 (sums payable for variation or waiver of [F3terms] of lease).
Textual Amendments
F2Words in Sch. 2 para. 71(1) substituted (13.8.2009) by The Finance Act 2009, Schedule 47 (Consequential Amendments) Order 2009 (S.I. 2009/2035), art. 1, Sch. para. 45
F3Word in Sch. 2 para. 71(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 646(3) (with Sch. 2 Pts. 1, 2)