Related Commentary  Related HMRC Manuals

228L(1)  For the purposes of section 228K, the amount of the net present value of the rentals is calculated as follows–

Step 1

Find the amount (“RI”) of each rental payment–

(a)which is payable at any time during the term of the lease, and

(b)which is payable on or after the relevant day.

Step 2

For each rental payment find the day (“the payment day”) on which it becomes payable.

Step 3

For each rental payment find the number of days in the period (“P”) which–

(a)begins with the relevant day, and

(b)ends with the payment day.

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