Finance Act 2003

6 (1) For the purposes of this Schedule the term of a lease is determined as follows. U.K.

(2) Subject to the following provisions of this paragraph, the term of a lease is—

(a) the contractual term specified in the lease, or

(b) if shorter, the period from the date of the grant of the lease until the end of the contractual term.

(3) Where in England and Wales or Northern Ireland—

(a) an agreement for a lease is entered into,

(b) the agreement is substantially performed otherwise than by completion, and

(c) a lease is subsequently granted in pursuance of the agreement,

the term of a lease is the period from the date of substantial performance of the agreement until the end of the contractual term specified in the lease.

In this sub-paragraph “substantially performed” and “completion” have the same meanings as in section 44 (contract and conveyance).

(4) Notwithstanding anything in sub-paragraph (2) or (3), a lease granted by way of renewal of a previous lease is treated as if its term had begun on the expiry of the previous lease.

This applies, in particular, to leases granted under Part 2 of the Landlord and Tenant Act 1954 (c. 56) or under the Business Tenancies (Northern Ireland) Order 1996 (S.I. 1996/725 (N.I. 5)).

(5) No account shall be taken of any right of either party to determine the lease or to renew it.