Part 19Sale and lease-back etc
Chapter 1Payments connected with transferred land
Interpretation etc
844Commercial rent: comparison with rent under a lease
1
Subsection (3) applies—
a
for the purpose of making a comparison under rule 4 of section 838(3) if section 838 has effect because of section 835(1), and
b
for the purpose of making a comparison under section 839(3) if section 839 has effect because of section 835(2).
2
In this section “the actual lease” means the lease mentioned in section 835(1)(b) or (2)(b).
3
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 835(1)(b) or (2)(b) is made, which—
a
was negotiated in the open market when the actual lease was created,
b
is of the same duration as the actual lease,
c
is subject to the terms and conditions of the actual lease as respects liability for maintenance and repairs, and
d
provides for rent payable at uniform intervals and at an appropriate rate.
4
Rent is payable at an appropriate rate if—
a
it is payable at a uniform rate, or
b
in a case where the rent payable under the actual lease is rent at a progressive rate (and such that the amount of rent payable for a year is never less than the amount payable for a previous year), it progresses by gradations proportionate to those provided by the actual lease.