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1. In paragraph 2 (calculation of tax chargeable in respect of rent), for sub-paragraphs (2) to (5) substitute—
“(2) The tax chargeable is the total of the amounts produced by taking the relevant percentage of so much of the relevant rental value as falls within each rate band.
(3) The relevant percentages and rate bands are determined by reference to whether the relevant land—
(a)consists entirely of residential property (in which case Table A below applies), or
(b)consists of or includes land that is not residential property (in which case Table B below applies).
Rate bands | Percentage |
---|---|
£0 to £60,000 | 0% |
Over £60,000 | 1% |
Rate bands | Percentage |
---|---|
£0 to £150,000 | 0% |
Over £150,000 | 1% |
(4) For the purposes of sub-paragraphs (2) and (3)—
(a)the relevant rental value is the net present value of the rent payable over the term of the lease, and
(b)the relevant land is the land that is the subject of the lease.
(5) If the lease in question is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the above provisions are modified.
(6) In that case the tax chargeable is determined as follows.
First, calculate the amount of the tax that would be chargeable if the linked transactions were a single transaction, so that—
the relevant rental value is the total of the net present values of the rent payable over the terms of all the leases, and
the relevant land is all land that is the subject of any of those leases.
Then, multiply that amount by the fraction:
where—
NPV is the net present value of the rent payable over the term of the lease in question, and
TNPV is the total of the net present values of the rent payable over the terms of the all the leases.”.
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