Section 681BF — Income Tax Act 2007: Position where rent reduces

Position where rent reduces 681BF 1 If the rent for a relevant period exceeds the rent for the following comparable period, the term of the new lease must be treated as ending on the date when the relevant period ends.

2 For the purposes of this section—

a a relevant period is a rental period of the new lease ending before its fifteenth anniversary, b the following comparable period (in relation to a relevant period) is the rental period which is of the same duration as the relevant period and which begins on the day following the end of the relevant period, c the rent for a period is the total rent payable under the new lease in respect of the period, d a rental period is a period in respect of which a payment of rent is to be made, and e the fifteenth anniversary of the new lease is the fifteenth anniversary of the date on which its term begins.

3 For the purposes of this section—

a all rental periods of a quarter must be treated as being of the same duration, and b all rental periods of a month must be treated as being of the same duration.