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In considering whether a particular sum is a ‘major lump sum� you should first exclude any element which is ‘rent�. That does not prevent the balance from being a major lump sum if it satisfies the other conditions.

‘Rent� is not expressly defined in the Schedule but the definition of a lease (see BLM70410) contains closing words which state that ‘rent� shall be construed ‘accordingly�, that is in accordance with what has gone before. Since the definition of a lease is widely drawn, the term ‘rent� should also be interpreted widely - to include payments for the hire of an asset, however labelled.

Example: a ‘lease� is defined in terms which include the hire of an intangible on which royalties may be payable; those royalties should be regarded as rent for the purpose of the second condition. But you should resist any suggestion that ‘rent� may include a sum which is not a hire payment or which is capital on first principles.