437C(1)  For the purposes of section 437A, the present value of a lease is the present value of the amounts mentioned in subsection (2).

437C(2)  The amounts are–

(a)the amounts payable under the lease after the relevant time, and

(b)any residual amount.

437C(3)  Subsection (2)(a) does not apply to amounts payable by the lessor or to amounts that represent–

(a)charges for services, or

(b)qualifying UK or foreign tax to be paid by the lessor.

437C(4)  Present value is to be calculated by using the interest rate implicit in the lease.

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