Corporation Tax Act 2009

Introduction U.K.

215 Overview of Chapter U.K.

(1) This Chapter provides for certain amounts (which would otherwise generally be amounts of a capital nature) to be brought into account as receipts in calculating the profits of a property business.

(2) The amounts relate to short-term leases in the case of—

• section 217 (lease premiums),

• section 218 (amount treated as lease premium where work required),

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

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

(3) The amounts relate to any lease in the case of—

• section 219 (sums payable instead of rent), and

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

(4) The amounts relate to the sale of any estate or interest in land in the case of—

• section 224 (sales with right to reconveyance), and

• section 225 (sale and leaseback transactions).

(5) This Chapter also permits certain deductions in calculating the profits of property businesses carried on by tenants under certain leases (see sections 231 and 232).

216 Meaning of “short-term lease” U.K.

In this Chapter “short-term lease” means a lease whose effective duration is 50 years or less.