Where the relevant payment is rent under a lease, the definition
of
commercial rent for the purpose of ICTA/S779 is to
be found in subsection (8). It may be noted that under this
definition the commercial rent can be uniform or progressive but
not diminishing.
Where the relevant payment is not rent under a lease (for
example, where it is a rent charge), the definition of
commercial rent is contained in subsection (9).
Where ICTA88/S779 applies, the taxpayer should be asked for
an estimate of the commercial rent, supported by any available
evidence. Any case in which the commercial rent cannot be agreed
should be submitted to CT&VAT (Technical).
