EE 4Ownership of lessee’s improvements: lessee

1. This section applies when—

2. a lessee of land incurs expenditure during the period during which the land is leased to the lessee in erecting a fixture on the land or making an improvement to the land; and
3. the lessor owns the fixture or improvement.

4. The following apply to the ownership of the fixture or improvement:

5. in the period during which the land is leased to the lessee,—
   1. the lessee is treated as owning the fixture or improvement; and
   2. the lessor is treated as not owning the fixture or improvement; and
   3. a person to whom the lessor disposes of the land during the period is treated as not owning the fixture or improvement; and
6. after the period during which the land is leased to the lessee,—
   1. the lessor is treated as not owning the fixture or improvement, unless the lessor incurs a cost relating to it at the end of the period; and
   2. a person to whom the lessor disposes of the land during the period is treated as not owning the fixture or improvement.

Compare

• 2004 No 35 s EE 4