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4The amount of tax chargeable on so much of the chargeable consideration as consists of rent is to be determined as follows.
Step 1
Calculate the net present value (NPV) of the rent payable over the term of the lease (see paragraph 6).
Step 2
For each tax band, multiply so much of the NPV as falls within the band by the tax rate for that band.
Step 3
Calculate the sum of the amounts reached under Step 2.
The result is the amount of tax chargeable in respect of rent.