332Non-standard chargeable variations

332 Non-standard chargeable variations (1) The lease variation charge for a non-standard chargeable variation of a nominal rent lease is the amount worked out under this section. (2) The commissioner for revenue works out the lease variation charge for a non-standard chargeable variation of a nominal rent lease as follows: LVC = (V1 − V2) × 75% LVC means the lease variation charge payable for the non-standard chargeable variation of the lease.

V1— (a) for a chargeable variation other than a consolidation or subdivision—means the capital sum that the lease might be (i) the lease were varied as proposed; and (ii) the lease were genuinely offered for sale immediately after the variation on the reasonable terms and conditions that a genuine seller would require; and (iii) either— (A) the rent payable throughout the term of the lease were a nominal rent; or (B) for a variation that involves the surrender of a lease and issue of a new lease—the rent payable for the term of the new lease were a nominal rent; or (b) for a chargeable variation that is a consolidation or subdivision—means the capital sum that the new lease or leases to be granted under the consolidation or subdivision might be (i) the consolidation or subdivision were to take place as proposed; and (ii) the new lease or leases were genuinely offered for sale immediately after the variation on the reasonable terms and conditions that a genuine seller would require; and (iii) the rent payable throughout the term of the new lease or leases were a nominal rent.

V2— (a) for a chargeable variation other than a consolidation or subdivision—means the capital sum that the lease might be (i) the lease were not varied during the remainder of its term; and (ii) the lease were genuinely offered for sale immediately before the variation on the reasonable terms and conditions that a genuine seller would require; and (iii) the rent payable throughout the term of the lease, or lease to be surrendered, were a nominal rent; or (b) for a chargeable variation that is a consolidation or subdivision—means the capital sum that the lease or leases to be surrendered under the consolidation or subdivision might be (i) no consolidation or subdivision were to take place during the remainder of the term of the surrendered lease or leases; and (ii) the lease or leases were genuinely offered for sale immediately before the consolidation or subdivision on the reasonable terms and conditions that a genuine seller would require; and (iii) the rent payable throughout the term of the lease, or leases to be surrendered, were a nominal rent. (3) If the amount worked out as V1 is equal to or less than the amount worked out as V2, no lease variation charge is payable. (4) If the development approval for the relevant development application relates to 2 or more non-standard chargeable variations, V1 and LVC are worked out as if the non-standard chargeable variations were a single non-standard chargeable variation of the lease.