(1)Subsection (2) applies if—
(a)expenditure has been incurred on the construction of a building,
(b)a lease of the building is granted out of the interest which is the relevant interest in relation to the expenditure,
(c)the duration of the lease exceeds 50 years, and
(d)the lessor and the lessee elect for subsection (2) to apply.
(2)This Part applies as if—
(a)the grant of the lease were a sale of the relevant interest by the lessor to the lessee at the time when the lease takes effect,
(b)any capital sum paid by the lessee in consideration for the grant of the lease were the purchase price on the sale, and
(c)the interest out of which the lease was granted had at that time ceased to be, and the interest granted by the lease had at that time become, the relevant interest.
(3)The election has effect in relation to all the expenditure—
(a)in relation to which the interest out of which the lease is granted is the relevant interest, and
(b)which relates to the building (or buildings) that is (or are) the subject of the lease.