Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11)

SCHEDULE 19 Leases

PART 2 Amount of tax chargeable: rent

Net present value

6 The net present value (NPV) of the rent payable over the term of a lease is calculated by applying the following formula—

where—

• r_i is the rent payable in respect of year i,

• i is the first, second, third etc. year of the term of the lease,

• n is the term of the lease, and

• T is the temporal discount rate (see paragraph 7).