Leases: commutation of rent or variation of terms: assessing time limits
TCGA92/SCH8/PARA3 (4)If a landlord
- is either the freeholder or is a leaseholder and that lease has more than 50 years to run, and
- receives a capital sum for the variation or waiver of the terms of the lease, or receives a capital sum for the commutation of the rent due under the lease and the lease provides for the possibility of such a payment, and
- the capital sum is payable before 6 April 1996,that capital sum is deemed to be a premium, or additional premium, payable for the original grant of the lease. See CG71360 for capital sums payable on or after 6 April 1996.