Corporation Tax Act 2009

227Circumstances in which additional calculation rule appliesU.K.
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(1)The rule in section 228 (the additional calculation rule) applies in relation to the calculation of receipts under—

  • section 217 (lease premiums),

  • section 219 (sums payable instead of rent),

  • section 220 (sums payable for surrender of lease),

  • section 221 (sums payable for variation or waiver of terms of lease), or

  • section 222 (assignments for profit of lease granted at undervalue).

(2)It applies if conditions A and B are met.

(3)Condition A is that—

(a)in the case of a receipt under section 217, 219 or 220, the lease is granted out of a taxed lease,

(b)in the case of a receipt under section 221, the lease was granted out of a taxed lease, and

(c)in the case of a receipt under section 222, the assignment is of a taxed lease.

(4)A lease is a “taxed lease” for the purposes of this Chapter if—

(a)there is a receipt under any of sections 217 to 222 in respect of the lease,

(b)there would be such a receipt, but for the operation of the rule in section 228 (the additional calculation rule) in the calculation of its amount,

(c)there is a receipt under any of sections 277 to 282 of ITTOIA 2005 (receipts in respect of lease premiums, sums payable instead of rent, for surrender of lease and for variation or waiver of terms of lease and assignments) in respect of the lease, or

(d)there would be such a receipt, but for the operation of the rule in section 288 of that Act (the additional calculation rule) in the calculation of its amount.

In this Chapter a receipt falling within paragraph (a), (b), (c) or (d) is referred to as a “taxed receipt”.

(5)Condition B is that the taxed receipt, or if there is more than one, at least one of them, has an unused amount.

(6)See section 230 for an explanation of when a taxed receipt has an “unused amount”.