Part 19Sale and lease-back etc

Chapter 2New lease of land after assignment or surrender

Introduction

849Overview of Chapter

(1)

This Chapter provides that in certain circumstances where a lease of land is assigned or surrendered and another lease is granted or assigned—

(a)

consideration received for the assignment or surrender of the first lease is taxed as a trade receipt or charged to corporation tax on income, and

(b)

tax relief is allowed for rent under the other lease.

(2)

The Chapter provides that in certain circumstances where a lease is varied it is treated as surrendered and another lease is treated as granted.