Counter-Inflation Act 1973

Premiums

5 (1) This paragraph has effect where a premium was lawfully required and paid on the grant of a tenancy to which paragraph 1 of this Schedule applies.

(2) Nc4hing in section 86 of the Rent Act 1968 (prohibition of premiums on assignment of protected tenancies) shall prevent any person from requiring or receiving, on an assignment of the tenancy, the fraction of the premium specified below (without prejudice, however, to his requiring or receiving a greater sum in a case where he may lawfully do so under Schedule 11 to the Rent Act 1968).

(3) If there was more than one premium, sub-paragraph (2) above applies to the last of them.

(4) The said fraction is where—

(a) X is the residue of the term of the tenancy at the date of the assignment, and

(b) Y is the term for which the tenancy was granted.

(5) Sub-paragraph (1) of this paragraph shall apply where a tenancy has been assigned as it applies where a tenancy has been granted, and then Y in the said fraction shall be the residue, at the date of that assignment, of the term for which the tenancy was granted.

(6) In this and the next following paragraph " grant" includes continuance and renewal.

6 (1) Where the tenancy to which paragraph 5(1) above applies was granted on the surrender of a previous tenancy, and a premium had been lawfully required and paid on the grant, or an assignment, of the previous tenancy, the surrender value of the previous tenancy shall be treated, for the purposes of paragraph 5 above as a premium, or as the case may be as part of the premium, paid on the said grant of the tenancy.

(2) For the purposes of sub-paragraph (1) above the surrender value of the previous tenancy shall be taken to be the amount which—

(a) if the previous tenancy had been assigned instead of being surrendered, and

(b) if this paragraph had applied to it,

would have been the amount which could have been required and received on the assignment in pursuance of paragraph 5 above and this paragraph.

(3) In determining for the purposes of paragraph 5 above, or o-f this paragraph, the amount which may be or could have been required and received on the assignment of a tenancy terminable, before the end of the term for which it was granted, by a notice to the tenant, that term shall be taken to be a term expiring at the earliest date on which such a notice, given after the date of the assignment, would have been capable of taking effect.