Paragraph 3

(1)

Expenditure on the acquisition of a leasehold interest in land except where it is intended at the time of the acquisition that some person shall erect a building on the land for the authority.

(2)

In this paragraph a leasehold interest means —

(a)

an interest granted for a term not exceeding twenty years which is not capable of being renewed or extended so that the interest and any renewal or extension together exceed twenty years and, if the interest is granted to commence on the expiry of another, one which, together with any interests previously acquired by the authority, does not exceed twenty years, or

(b)

an interest granted for a term exceeding twenty years, where —

(i)

that interest is granted to commence on the expiry of another leasehold interest (in this paragraph referred to as “the former interest”);

(ii)

the former interest was acquired (whether by grant or assignment) before April 1, 1980, and

(iii)

the former interest was for a term which did not exceed twenty years.