Finance Act 1998

40 Treatment of premiums as rent

(1) Section 34 of the Taxes Act 1988 (treatment of premiums, etc. as rent) is amended as follows.

(2) In subsection (1) for “becoming entitled when the lease is granted to” substitute “receiving when the lease is granted”.

(3) In subsection (4)—

(a) in paragraph (a), for the words from “in computing” to “in lieu of rent” substitute “in computing the profits of the Schedule A business of which the sum payable in lieu of rent is by virtue of this subsection to be treated as a receipt”; and

(b) in paragraph (b), for “deemed to become due” substitute “deemed to be received”.

(4) In subsection (5)—

(a) in paragraph (a), for “tax chargeable by virtue of this subsection” substitute “the profits of the Schedule A business of which that sum is by virtue of this subsection to be treated as a receipt”; and

(b) in paragraph (b), for “deemed to become due” substitute “deemed to be received”.

(5) The above amendments have effect in relation to amounts treated as received under section 34 of the Taxes Act 1988 on or after 17th March 1998.