# Landlord and Tenant Act 1954, Paragraph 8: Elements 1 and 2


(1) This paragraph sets out elements 1 and 2.
(2) Element 1: an amount of rent (the “reference amount”) is determined by reference to—
(a) the effect of inflation or any other index or multiplier on the rent,
(b) the amount of either or both of the following—
(i) actual rent for premises;
(ii) a hypothetical market rent, or other notional rent, for premises, or
(c) the amount of the tenant’s turnover.
(3) The premises for which rent falling within sub-paragraph (2)(b) is, or is assumed to be, payable may be either or both of the following—
(a) the premises demised by the tenancy which is subject to the rent review terms;
(b) other premises (whether real or hypothetical).
(4) The reference in this paragraph to the amount of a notional rent for premises includes an amount calculated in accordance with the rent review terms on the basis of actual or assumed information or other assumptions.
(5) Element 2: the amount of the new passing rent—
(a) will be different from the reference amount, or
(b) could be different from the reference amount (whether or not the amount could, alternatively, be the reference amount).

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Source: https://www.legislation.gov.uk/ukpga/Eliz2/2-3/56/schedule/7A/paragraph/8 (the official version)
Page: https://openlegislation.uk/landlord-and-tenant-act-1954/schedule-7A/paragraph-8
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.