sec.7Meaning of outgoings

sec.7 Meaning of outgoings

A lessor’s outgoings for a retail shopping centre or leased building are— the lessor’s reasonable expenses directly attributable to the operation, maintenance or repair of the centre or building and areas ( associated areas ) used in association with the centre or building; and charges, levies, premiums, rates or taxes payable by the lessor because the lessor is the owner or occupier of— the centre or building; or the land on which the centre or building is situated; and an amount mentioned in section 24A (2) . An outgoing mentioned in subsection (1) may be either an apportionable outgoing or a specific outgoing and the sum of the apportionable outgoings and specific outgoings is the lessor’s outgoings. However, lessor’s outgoings do not include— land tax payable on the land on which the centre or building is situated; and expenditure of a capital nature, including the amortisation of capital costs; and contributions to a depreciation or sinking fund; and insurance premiums for loss of profits; and payment of an excess in relation to a claim on the lessor’s insurance policy for the centre or building or associated areas; and lessor’s contributions to merchants’ associations and centre promotion funds; and payment of interest and charges on amounts borrowed by the lessor. Costs and expenses of or incidental to the building or extension of, or major improvement of a structural nature to, the centre or building or associated areas, are expenditure of a capital nature. Replacement costs of major items of plant and equipment in the centre or building are expenditures of a capital nature. s 7 amd 2000 No. 19 s 5 ; 2016 No. 21 s 6 (sec.7-ssec.1) A lessor’s outgoings for a retail shopping centre or leased building are— the lessor’s reasonable expenses directly attributable to the operation, maintenance or repair of the centre or building and areas ( associated areas ) used in association with the centre or building; and charges, levies, premiums, rates or taxes payable by the lessor because the lessor is the owner or occupier of— the centre or building; or the land on which the centre or building is situated; and an amount mentioned in section 24A (2) . (sec.7-ssec.2) An outgoing mentioned in subsection (1) may be either an apportionable outgoing or a specific outgoing and the sum of the apportionable outgoings and specific outgoings is the lessor’s outgoings. (sec.7-ssec.3) However, lessor’s outgoings do not include— land tax payable on the land on which the centre or building is situated; and expenditure of a capital nature, including the amortisation of capital costs; and contributions to a depreciation or sinking fund; and insurance premiums for loss of profits; and payment of an excess in relation to a claim on the lessor’s insurance policy for the centre or building or associated areas; and lessor’s contributions to merchants’ associations and centre promotion funds; and payment of interest and charges on amounts borrowed by the lessor. Costs and expenses of or incidental to the building or extension of, or major improvement of a structural nature to, the centre or building or associated areas, are expenditure of a capital nature. Replacement costs of major items of plant and equipment in the centre or building are expenditures of a capital nature.