(1) For the purposes of this Chapter the cost of a lease (other than a franchise arrangement) is the aggregate of the following:
(a) the rent payable during the term of the lease or in advance of the lease and any amount paid or payable for the right to use land under the lease;
(b) any premium payable for the lease;
(c) any rates and taxes paid or payable on behalf of the lessor in connection with the lease;
(d) the value of improvements and additions to the leased premises made or undertaken to be made by or on behalf of, or at the expense of, the lessee under an agreement or covenant by the lessee (other than fit-out costs), to the extent provided by section 146;
(e) any royalties payable under the lease, including royalties for the right to enter onto and remove something from the land.
(2) A reference in subsection (1) to rent shall be read as including a reference to any payment under the lease expressed to be rent.
(3) For the purposes of this Chapter, the cost of a franchise arrangement is the aggregate of all amounts payable for the grant of the franchise (including any renewal fees where the franchise arrangement is entered into by way of renewal of a previous franchise arrangement) and the exercise of the franchisee's rights during the term of the arrangement, to the extent that any of those amounts are referable to the Territory and the cost includes any amounts so payable under the arrangement for—
(a) the right to use the goodwill of the business (including payments by way of royalty or as a percentage of turnover);
(b) the right to use systems and processes, instruction manuals and operation manuals, business names, logos, trademarks, patents and copyright material in connection with the business; or
(c) the use of goods;
but does not include any amounts payable under the arrangement for goods that are stock-in-trade or materials provided for use in manufacture.
(4) If a franchise arrangement applies to an area that comprises the whole or part of the Territory and a place outside the Territory, duty is not payable on that proportion of the cost of the franchise arrangement that represents the extent to which the franchise has been granted in respect of the place that is outside the Territory.