Where a chargeable transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the transaction is to be determined as follows.

• Step 1

  For each tax band applicable to the type of transaction, multiply so much of the relevant consideration as falls within the band by the tax rate for that band.

• Step 2

  Calculate the sum of the amounts reached under Step 1.

  The result is the total tax chargeable.

• Step 3

  Divide the chargeable consideration for the transaction by the relevant consideration.

• Step 4

  Multiply the total tax chargeable by the fraction reached under Step 3.

  The result is the amount of tax chargeable.

The relevant consideration is the total of the chargeable consideration for all the linked transactions.

In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to schedule 19 (leases).