Part 3

Property income
Chapter 4

Profits of property businesses: lease premiums etc.

Other interpretative provisions

Provisions about premiums
306
1
For the purposes of this Chapter, the presumption is that a sum paid on or in connection with the granting of a tenancy has been paid by way of premium.
2
This does not apply if the sum is rent.
3
This also does not apply so far as other sufficient consideration for the payment can be shown to have been given.
4
In this section “sum” includes the value of any consideration.
5
Where rule 3 in section 303 (rules for determining effective duration of lease) applies, the premium, or an appropriate part of it, payable for or in connection with either lease mentioned in that rule may be treated for the purposes of this Chapter as having been required under the other.