Section 368: Provisions applying on ending of lease
1264.This section is based on section 126(5) of CAA 1990. It deals with three other cases involving the ending of a lease.
1265.Subsection (2) applies if the same lessee gets a new lease of the whole or part of the related agricultural land. Then the lessee keeps the relevant interest.
1266.Subsection (3) applies if a new (incoming) lessee:
gets a new lease of whole or part of the related agricultural land; and
pays the outgoing lessee for agricultural buildings on which qualifying expenditure had been incurred.
1267.The new lessee is then treated as having acquired the relevant interest in the whole of the related agricultural land. This links with section 375 which deals with the calculation of allowances after acquisition of a relevant interest.
1268.There is a minor change. Subsections (2) and (3) go further than section 126 of CAA 1990 by catering for cases in which the new lease is for part of the land as well as those in which the new lease is for all of the land. See Change 42 in Annex 1.
1269.Subsection (4) applies in other cases. The relevant interest is treated as acquired by the lessor.