F1Part 12ASale and lease-back etc
F2Chapter 3Leased trading assets
Pt. 12A Ch. 3 inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 4 para. 4 (with Sch. 9 paras. 1-9, 22)
Relief: restriction and carrying forward
681CECommercial rent
1
Subsection (3) applies for the purpose of making a comparison under rule 4 of section 681CC(3).
2
In this section “the actual lease” means the lease mentioned in section 681CB(2)(a).
3
The commercial rent is the rent which might at the relevant time be expected to be paid under a lease of the asset if—
a
the lease were for the rest of the asset's expected normal working life,
b
the rent were payable at uniform intervals and at a uniform rate, and
c
the rent gave a reasonable return for the asset's market value at the relevant time, taking account of the actual lease's terms and conditions.
4
The relevant time is the time when the actual lease was created.
5
An asset's expected normal working life is the period which might be expected, when it is first put into use, to pass before it is finally put out of use as being unfit for further use.
6
In applying subsection (5) it must be assumed that the asset will be used in the normal way, and to the normal extent, throughout the period.
7
If the asset is used at the same time partly for the purposes of the trade mentioned in section 681CB(2)(b) and partly for other purposes, the commercial rent as defined in subsection (3) is to be determined by reference to what would be paid for such partial use.
Pt. 12A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 4 para. 2 (with Sch. 9 paras. 1-9, 22)