Paragraph 39 InterpretationI1

In this Part of this Schedule—

• “applicable capitalisation rate”, in relation to any aspect of the determination of a term value, means the capitalisation rate prescribed in regulations made by the Secretary of State that is applicable to that aspect by virtue of the regulations — and for this purpose a “capitalisation rate” is a rate at which the entitlement to receive rent over the remainder of the term of a lease is capitalised;

• “rent” has the same meaning as in the LR(GR)A 2022 (see section 22(2) and (3) of that Act);

• “unexpired term”, in relation to a lease, means the period that—

  1. (a)

     begins with the valuation date, and

  2. (b)

     ends with the term date of the lease.

A statutory instrument containing regulations under this paragraph is subject to the negative procedure.

The Secretary of State must review the capitalisation rate or rates every ten years.