Development of Tourism Act 1969

Expenditure incurred by lessor

3 (1) This paragraph applies where expenditure eligible for a grant under Part II of this Act has been incurred, or would (but for this paragraph) be treated under paragraph 2 of this Schedule as if it had been incurred, by a person who at the relevant time is a lessor (in this paragraph referred to as " the relevant lessor ") of the hotel in respect of which the expenditure was incurred.

(2) The expenditure shall be treated, for the purposes of the grant, as if it had been incurred by any person (whether the occupier of the hotel at the relevant time or, if he holds indirectly under the relevant lessor, an intermediate lessor) in whose case the following requirements are satisfied, that is to say—

(a) that he (and each intermediate lessor, if any, between himself and the relevant lessor) holds under a lease which—

(i) began after the execution of the work which gave rise to the expenditure ; and

(ii) was granted for a consideration which consisted of or included a capital sum of an amount not less than the amount of that expenditure ; and

(b) in the case of an intermediate lessor, that the expenditure cannot by virtue of the foregoing provisions of this paragraph be treated as if it had been incurred by a person holding under him.

(3) In the application of the foregoing provisions of this paragraph to a relevant lessor who himself holds under a lease the expenditure mentioned in sub-paragraph (2)(a)(ii) shall include any expenditure which would be treated under those provisions as if it had been incurred by the relevant lessor if he were himself the occupier of the hotel at the relevant time.