SCHEDULES
C1SCHEDULE 8Leases
Exclusion of premiums taxed under Schedule A etc.
6
F21
If—
a
under section 37(4) of the Taxes Act (allowance where, by the grant of a sublease, a lessee has converted a capital amount into a right to income) a person is to be treated as paying additional rent in consequence of having granted a sublease, or
b
under section 292 of ITTOIA 2005 a person is to be treated as incurring expenses in consequence of having granted a sublease,
the amount of any loss accruing to the person on the disposal by way of the grant of the sublease shall be reduced by the total amount of rent which the person is thereby treated as paying, or the total amount of expenses which the person is thereby treated as incurring, over the term of the sublease (and without regard to whether relief is thereby effectively given over the term of the sublease), but not so as to convert the loss into a gain, or to increase any gain.
2
Nothing in section 37 of this Act shall be taken as applying in relation to any amount F1brought into account by virtue of section 35 of the Taxes Act (charge on assignment of a lease granted at an undervalue) as a receipt of a Schedule A business (within the meaning of that Act)F3or by virtue of section 282 of ITTOIA 2005 (assignments for profit of lease granted at undervalue) as a receipt of a UK property business (within the meaning of that Act).
3
If any adjustment is made under section 36(2)(b) of the Taxes Act on a claim under that paragraph F4or under section 301 or 302 of ITTOIA 2005 on a claim under that section, any necessary adjustment shall be made to give effect to the consequences of the claim on the operation of this paragraph or paragraph 5 above.
Sch. 8 modified (with effect in accordance with s. 39(4)(a)(5) of the amending Act) by Finance Act 1995 (c. 4), s. 39(3), Sch. 6 para. 37