SCHEDULES

SCHEDULE 2Transitionals and savings

Part 7Property income

Lease premiums: rules for determining effective duration of lease

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1

In relation to a lease granted after 24 August 1971 and before 1 April 2009, section 243 applies with the following modifications.

2

In subsection (1) for Rule 1 substitute—

Rule 1: A lease is not to be treated as having been granted for a term longer than one ending on a date before the end of the term for which the lease was granted if—

a

the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond that date, and

b

the premium was not substantially greater than it would have been had the term been one ending on that date.

3

Omit subsection (3).