Section 105A | Lease premiums ^F1

(1)For the purposes of section 105(4B)(b) an amount is attributed to the relevant period “in respect of a lease premium” if—^F1

(a)the property consists of premises, or a part of premises, that are subject to a lease,^F1

(b)the premises are not mainly used by P for a purpose other than the provision of living accommodation to which this Chapter applies,^F1

(c)the lease is for a term of 10 years or less, and^F1

(d)the net amount payable by P in relation to the lease by way of lease premium is greater than zero.^F1

(2)The amount so attributed is—^F1

(3)For provision about the application of this section in relation to certain leases with break clauses, see section 105B.^F1

(4)For the purposes of this section the net amount payable by P in relation to a lease by way of lease premium is—^F1

(a)the total amount (if any) that has been paid, or is or will become payable, by P in relation to the lease by way of lease premium, less^F1

(b)any amount within paragraph (a) that has been repaid or is or will become repayable.^F1

(5)In this section and section 105B “lease premium” means any premium payable—^F1

(a)under a lease, or^F1

(b)otherwise under the terms on which a lease is granted.^F1

(6)In the application of this section to Scotland “premium” includes a grassum.^F1