Modifications etc. (not altering text)
C1 S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
(1)In section 389—
“commercial rent” means such rent as may reasonably be expected to have been required in respect of the subordinate interest (having regard to any premium payable for the grant of the interest) if the transaction had been at arm’s length;
“” includes any capital consideration, except so much of any sum as corresponds to [F1—]
an amount of rent or profits falling to be calculated by reference to that sum under section 34 of ICTA [F2, or
an amount brought into account as a receipt in calculating the profits of a UK property business under sections 277 to 281 of ITTOIA 2005 that is calculated by reference to the sum; ]
an amount of rent or profits falling to be calculated by reference to that sum under section 34 of ICTA;
“subordinate interest” means an interest in or right over the related agricultural land, whether granted by the former owner or anyone else.
(2)In section 389 and this section—
“capital consideration” means consideration which consists of a capital sum or would be a capital sum if it had consisted of a money payment, and
“rent” includes any consideration which is not capital consideration.
Textual Amendments
F1Words in definition in s. 390(1) become para. (a) (with effect in accordance with s. 883(1) of the amending Act) by virtue of Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 557(a) (with Sch. 2)
F2Words in s. 390(1) inserted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 557(b) (with Sch. 2)