Land and Buildings Transaction Tax (Scotland) Act 2013

Net present value

This section has no associated Explanatory Notes

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

where—

  • ri 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).