§ 12.—(1) Where the relevant interest in relation to the capital expenditure incurred on the construction of a building is an 997 interest under a lease, this Schedule shall have effect subject to the following provisions of this paragraph, and in those provisions—
- (a) except in sub-paragraph (5), any reference to a lessor or lessee is a reference to the lessor or lessee under that lease and
- (b) in sub-paragraph (5) the reference to the first lease is a reference to that lease.
§ (2) Where, with the consent of the lessor, a lessee of any building remains in possession thereof after the termination of the lease without a new lease being granted to him, that lease shall be deemed for the purposes of this Schedule to continue so long as he remains in possession as aforesaid.
§ (3) Where, on the termination of a lease, a new lease is granted to the lessee in pursuance of an option available to him under the terms of the first lease, the provisions of this Schedule shall have effect as if the second lease were a continuation of the first lease.
§ (4) Where, on the termination of a lease, the lessor pays any sum to the lessee in respect of a building comprised in the lease, the provisions of this Schedule shall have effect as if the lease had come to an end by reason of the surrender thereof in consideration of the payment.
§ (5) Where, on the termination of a lease, another lease is granted to a different lessee and, in connection with the transaction, that lessee pays a sum to the person who was the lessee under the first lease, the provisions of this Schedule shall have effect as if both leases were the same lease and there had been an assignment thereof by the lessee under the first lease to the lessee under the second lease in consideration of the payment.