§ (1) It is hereby declared that in relation to a lease which has determined the person in whom the lessor's interest was vested immediately before the expiration of the term for which the lease was granted, or if the lease has determined before that time, immediately before the transaction or event in consequence of which the lease has determined is the lessor for the purpose of Section fifteen of the Finance (1909–10) Act, 1910 (in this Act referred to as the principal Act), and is the person to whom any benefit accrues from or by reason of the determination of the lease for the purpose of the other provisions of that Act relating to Reversion Duty.
§ (2) Where, whether before or after the passing of this Act, a lease of any land determines on the vesting of the lessor's interest and the lessee's interest in the same person before the expiration of the term for which the lease was granted, the amount of the Reversion Duty (if any) payable shall not be the full duty, but such an amount as would, with compound interest at the rate of four per centum per annum for the residue of the term for which the 1610 lease was granted, produce the amount of the full duty.
§ For the purposes of this provision the full duty means the duty (if any) which would have become payable if the lease had not determined until the expiration of the term for which it was granted, and if the total value of the land were at that time the same as it is when the lease actually determines.
§ (3) Sub-section (3) of Section fourteen of the principal Act shall cease to have effect and shall be deemed never to have had effect.
§ Amendment made: At end of Section (2) insert—
§ (3) No Reversion Duty shall be charged on the determination of any lease of land where the lease is determined in pursuance of an agreement between the lessor and the lessee for the acquisition by the lessee of the lessor's interest, if at the time of the determination of the lease—
- (a) the lease has at least fifty years of its term to run; and
- (b) the total value of the land does not exceed five hundred pounds.
§ (4) Where a lease of any land held upon trust for any body of persons is deter mined before the expiration of the term of the lease by the surrender thereof to the lessor upon the terms that he shall grant to those persons severally leases of 1611 various plots of land representing in the aggregate the whole of the land comprised in the original lease, for a term in each case equal to the unexpired term of the residue of the original lease, and at rents amounting in the aggregate to but not exceeding the rent reserved by the original lease, no Reversion Duty shall be payable on the determination of the lease.
§ Provided that the lessor shall in any case to which this provision applies deliver an account under Section fifteen of the principal Act in the same manner as if Reversion Duty were payable on the determination of the leave.—[Mr Hobhouse.]