Paragraph 5: the permitted maximumE+W
6(1)In paragraph 5 “the permitted maximum”, in relation to a qualifying lease, has the following meaning.
(2)The permitted maximum is (subject to sub-paragraphs (3) to (5))—
(a)if the premises demised by the qualifying lease are in Greater London, £15,000;
(b)otherwise, £10,000.
(3)Where the value of the qualifying lease at the qualifying time exceeded £1,000,000 but did not exceed £2,000,000, the permitted maximum is £50,000.
(4)Where the value of the qualifying lease at the qualifying time exceeded £2,000,000, the permitted maximum is £100,000.
(5)Where the qualifying lease is a shared ownership lease and the tenant’s total share was less than 100% at the qualifying time—
(a)the value of the qualifying lease at that time is to be determined as if the tenant’s total share at that time was 100%;
(b)the permitted maximum is the tenant’s total share (as at that time) of what would otherwise be the permitted maximum.
(6)The Secretary of State may by regulations make provision about the determination of the value of a qualifying lease for the purposes of paragraph 4 and this paragraph.
(7)The regulations may in particular provide that, except in prescribed cases, the value of a qualifying lease at the qualifying time is to be determined by—
(a)ascertaining the consideration given on the latest disposal of the qualifying lease on the open market to have been made before that time, and
(b)if that disposal occurred before 2022, uprating the consideration in accordance with the regulations.
(8)In this paragraph “shared ownership lease” and “total share” have the meaning given by section 7 of the Leasehold Reform, Housing and Urban Development Act 1993.
Commencement Information
I1Sch. 8 para. 6 in force at 28.6.2022, see s. 170(3)(a)