Section 228MC | Rental rebate ^F1

(1)For the purposes of section 228MA “rental rebate” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.

(2)The general rule is that the termination value of an asset is the value of the asset at or about the time when the lease terminates.

(3)Calculation by reference to the termination value includes calculation by reference to any one or more of—

(a)the proceeds of sale, if the asset is sold,

(b)any insurance proceeds, compensation or similar sums in respect of the asset, and

(c)an estimate of the market value of the asset.

(4)Calculation by reference to the termination value also includes—

(a)determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or

(b)any other form of calculation indirectly by reference to the termination value.