Part 4Property income

Chapter 7Rent receivable in connection with a UK section 39(4) concern

Charge to tax on rent receivable in connection with a UK section 39(4) concern

270Charge to tax on rent receivable in connection with a UK section 39(4) concern

The charge to corporation tax on income applies to rent receivable in connection with a UK section 39(4) concern.

271Meaning of “rent receivable in connection with a UK section 39(4) concern”

1

For the purposes of this Chapter rent is receivable in connection with a UK section 39(4) concern if—

a

it is receivable in respect of an estate, interest or right in or over land in the United Kingdom, and

b

the estate, interest or right is used, occupied or enjoyed in connection with a concern listed in section 39(4).

2

For the purposes of this Chapter rent is also receivable in connection with a UK section 39(4) concern if—

a

it is receivable in respect of an estate, interest or right in or over land in the United Kingdom,

b

the lease or other agreement under which it is receivable provides for its recoupment by reducing royalties or payments of a similar nature, and

c

the reduction applies if the estate, interest or right is used, occupied or enjoyed in connection with a concern listed in section 39(4).

3

In this Chapter “rent” includes—

a

a receipt mentioned in section 207(3), and

b

any other receipt in the nature of rent.