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Hmmm...I think there is some confusion here.

As I see it, the situation is precisely the same as applies with an offset mortgage. As far as I know, if an individual pays off part of his mortgage loan temporarily with "savings" which he may then draw down upon, he does not get taxed on an imputed amount of loan interest he is thereby not paying.

The same applies here. The Occupier may acquire "Equity Shares" (ie proportional shares in the land/property rental values) at a market price by paying more "Capital Rental" than is due.

He does this through membership of a "Land Partnership" property pool which is essentially a Cooperative of Property Occupiers in partnership with a Cooperative of Property Investors where the freeholds are all held by a "Custodian".

These "Equity Shares" confer no taxable income, as far as I can see, but do reduce the Capital Rental due.

The partnership framework essentially allows a new form of hybrid tenure of indefinite duration or "evergreen" lease.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Thu Apr 10th, 2008 at 07:05:24 PM EST
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