(1) The rules in this section have effect if, after the end of the lease (or the end of any extension of the lease term or renewal of the lease), the lessee continues to have the * right to use the * car because the term of the lease is extended (or further extended) or the lease is renewed (or further renewed).
(2) This Act has effect as if the lessee continued to be the owner of the * car until the end of the lease as extended or renewed.
(3) However, this Act has effect as if the lessee stopped being the owner of the * car if:
(a) the lessee enters into a sublease in respect of the car; and
(b) this Division applies to the car in respect of that sublease.
(4) This Act has effect as if the notional loan that arose because of the grant of the lease, or because of the previous extension or renewal, had been repaid.
Note: Also, Subdivision 242-D (about balancing adjustments) will apply to the ending, extension or renewal.
(5) This Act has effect as if, on the grant of the extension or renewal, the lessor had made a new loan (the notional loan ) to the lessee:
(a) for the period of the extension of the term of the lease or the period of the renewed lease, as the case may be; and
(b) of an amount (the notional loan principal ) equal to the * car's * market value when the extension or renewal is granted; and
(c) subject to the payment of interest.
(6) This Act has effect as if the notional loan principal were repaid, and the interest were paid, by the making of the * luxury car lease payments under the lease as extended or renewed (or further extended or renewed).
(7) In determining whether subsection (1) applies to the lessee, disregard any period after the end of the lease (or the end of any extension of the lease term or renewal of the lease) and before the extension or renewal (or further extension or renewal) is granted and during which the lessee did not have the * right to use the * car if the extension or renewal (or further extension or renewal):
(a) has effect from the time immediately after the end of that term, extension or renewal; or
(b) otherwise results in substantial continuity of the leasing of the car to the lessee.
(8) The amount of the notional loan is treated, for the purposes of section 242- 65 (about the lessor's balancing adjustments), as a * termination amount paid to the lessor under the lease or under the previous extension or renewal.