Additional calculation rules for reducing certain receipts

Legislation/Regulatory – ITTOIA2005 s. 287-290
HMRC Guidance – BIM46280 ; CG70900

Allowable deductions

Generally

Legislation/Regulatory – CTA2009 s. 62, 63, Sch. 2, para. 18-20
HMRC Guidance – BIM15025 ; BIM46255 ; BIM46265 ; BLM51015 ; CG71200

Mineral extraction allowances, limit on

Legislation/Regulatory – CTA2009 s. 64

Not occupying land but dealing with land

Legislation/Regulatory – CTA2009 s. 65
HMRC Guidance – BIM46270

Restrictions on expenses

Legislation/Regulatory – CTA2009 s. 66, 67

Amount treated

Commentary – Tax Reporter ¶300-120

Amount treated as a receipt

Legislation/Regulatory – ITTOIA2005 s. 277
HMRC Guidance – CA90600 ; CFM73280

Anti-avoidance provisions

Commentary – Chanda on Property Investment 10.9

Any lease

Legislation/Regulatory – ITTOIA2005 s. 276

Assigned lease

Commentary – Chanda on Property Investment 10.7.3

Assignment of lease granted at undervalue

Certification from HMRC

Commentary – Tax Reporter ¶300-150

Grant at an undervalue

Commentary – Tax Reporter ¶300-150

Profit on an assignment

Commentary – Tax Reporter ¶300-150

Capital gains tax

Commentary – Quick Overview ¶15635

Capital gains tax considerations

Definition of lease premium (for CGT)

Commentary – Chanda on Property Investment 10.3

Long lease (landlord's position)

Commentary – Chanda on Property Investment 10.6.1

Long lease (tenant's position)

Commentary – Chanda on Property Investment 10.6.2

Short lease (landlord's position)

Commentary – Chanda on Property Investment 10.7.1 ; Chanda on Property Investment 10.8.3 ; Chanda on Property Investment 10.8.4

Short lease (tenant's position)

Commentary – Chanda on Property Investment 10.7.2

Short-term leases

Commentary – Chanda on Property Investment 10.4

Wasting assets

Commentary – Chanda on Property Investment 10.4

Charge to tax

Legislation/Regulatory – ITTOIA2005 s. 60-67

Chargeable gains/allowable losses

Legislation/Regulatory – TCGA92 Sch. 8, para. 2-7
HMRC Guidance – CG70722 ; CG70820 ; CG70840 ; CG71004 ; CG71007 ; CG71210 ; CG71262 ; CG71350 ; CG71352

Concept and purpose

Commentary – Chanda on Property Investment 10.1

Connected parties

Commentary – Chanda on Property Investment 10.3

Corporation tax

Appeals against determinations

Commentary – Tax Reporter ¶711-575

Assignment of lease granted at undervalue

Commentary – Tax Reporter ¶711-450

Deductions

Commentary – Tax Reporter ¶711-525

Generally

Commentary – Tax Reporter ¶711-325

Instalment payments

Commentary – Tax Reporter ¶711-600

Leases, meaning

Commentary – Tax Reporter ¶711-350

Lieu of rent

Commentary – Tax Reporter ¶711-375

Premiums, meaning

Commentary – Tax Reporter ¶711-350

Reduction in amount of premium charged

Commentary – Tax Reporter ¶711-525

Revenue deduction, as

Commentary – Tax Reporter ¶711-525

Reverse premiums

Commentary – Tax Reporter ¶711-550

Sale of land with lease back

Commentary – Tax Reporter ¶711-500

Sale of land with right to reconveyance

Commentary – Tax Reporter ¶711-475

Short leases

Commentary – Tax Reporter ¶711-375 ; Tax Reporter ¶711-400

Surrender of short-term lease

Commentary – Tax Reporter ¶711-400

Variation or waiver of lease terms, payment for

Commentary – Tax Reporter ¶711-425
Case Law – Banning v. Wright (H.M. Inspector of Taxes)

Corporation tax receipts and deductions

Legislation/Regulatory – ITTOIA2005 s. 296, 297, 298

Dealers in land

Legislation/Regulatory – ITTOIA2005 s. 158
HMRC Guidance – BIM51525

Deductions for

Commentary – Tax Reporter ¶216-350 ; Tax Reporter ¶300-180 ; Tax Reporter ¶708-210
HMRC Guidance – BIM46255

Deductions related payment

Commentary – Tax Reporter ¶300-300–Tax Reporter ¶300-320

Definition

Commentary – Chanda on Property Investment 10.1 ; Chanda on Property Investment 10.3

Delayed premiums or lump sum rents

Commentary – Quick Overview ¶22215 ; Quick Overview ¶7215

Determinations affecting liability of more than one person

Appeals against

Legislation/Regulatory – ITTOIA2005 s. 302A, 302B

Tribunal by

Legislation/Regulatory – ITTOIA2005 s. 302C

Disposals under finance arrangements

Legislation/Regulatory – ITTOIA2005 s. 281A

Duration of a lease

Paid for grant of a lease of less than 50 years

Commentary – Quick Overview ¶22205 ; Quick Overview ¶7205

Employer-provided accommodation

Commentary – Tax Reporter ¶414-675
Legislation/Regulatory – FA2009 s. 71(4)-(6) ; ITEPA2003 s. 105(4)-(4B), 105A, 105B
HMRC Guidance – EIM11410 ; EIM11432 ; EIM11502

Generally

Commentary – Tax Reporter ¶300-110 ; Quick Overview ¶7200 ; Chanda on Property Investment 10.1 ; Chanda on Property Investment 11.1.1

Grant of lease at undervalue

Commentary – Quick Overview ¶22210 ; Quick Overview ¶7235

Grant of lease at undervalue, assignment for profit

Generally

Legislation/Regulatory – ITTOIA2005 s. 282, 283, 287-290
HMRC Guidance – CG71210

Statement of accuracy

Legislation/Regulatory – ITTOIA2005 s. 300

Income tax relief for tenant

Long lease

Commentary – Chanda on Property Investment 10.6.2

Short lease

Commentary – Chanda on Property Investment 10.7.2

Inducement payments

– see Inducement payments

Long lease

Commentary – Chanda on Property Investment 10.6

Meaning

Legislation/Regulatory – ITTOIA2005 s. 306, 307

Non-cash benefit

Commentary – Chanda on Property Investment 10.3

Payment by installments

Commentary – Tax Reporter ¶300-200

Payment of tax by instalments

Legislation/Regulatory – ITTOIA2005 s. 299

Payments in lieu of rent

Commentary – Tax Reporter ¶300-120

Receipts from property business

Additional calculation rules for reducing certain receipts

Legislation/Regulatory – CTA2009 s. 227-230
HMRC Guidance – BIM46280 ; BIM64365 ; CG70900

Amounts treated as receipts

Legislation/Regulatory – CTA2009 s. 217, 221A
HMRC Guidance – CA90600

Assignment for profit of lease granted at undervalue

Legislation/Regulatory – CTA2009 s. 222, 223, 237, Sch. 2, para. 38
HMRC Guidance – CG71210

Meaning of premium

Legislation/Regulatory – CTA2009 s. 247, Sch. 2, para. 48

Payment of tax by instalments

Legislation/Regulatory – CTA2009 s. 236

Pre-commencement receipts

Legislation/Regulatory – CTA2009 Sch. 2, para. 39, 40

Reduction of

Legislation/Regulatory – CTA2009 s. 136
HMRC Guidance – BIM51525

Short-term lease

Legislation/Regulatory – CTA2009 s. 216, 217

Sums paid

Legislation/Regulatory – CTA2009 s. 246, Sch. 2, para. 48
HMRC Guidance – CIRD12640

Sums payable instead of rent

Legislation/Regulatory – CTA2009 s. 219, Sch. 2, para. 36

Sums, meaning

Legislation/Regulatory – CTA2009 s. 247

Surrender of lease, sums payable

Legislation/Regulatory – CTA2009 s. 220, Sch. 2, para. 37

Tenant to carry out works

Legislation/Regulatory – CTA2009 s. 218
HMRC Guidance – BIM64365 ; CG70840

Variation or waiver in terms of lease, sums payable

Legislation/Regulatory – CTA2009 s. 221, 221A

Reconveyances

Commentary – Quick Overview ¶7225

Reduction in amount of premium charged

Commentary – Tax Reporter ¶300-180

Rent (distinguished)

Commentary – Chanda on Property Investment 10.1 ; Chanda on Property Investment 10.3 ; Chanda on Property Investment 6.7.1

Rent, sums payable instead of

Legislation/Regulatory – ITTOIA2005 s. 279, 287-290

Rent, treatment as

Commentary – Quick Overview ¶22200 ; Quick Overview ¶7200

Revenue deduction, as

Commentary – Tax Reporter ¶300-180

Reverse

– see Reverse premiums

Reverse premiums

– see also Inducement payments; Reverse premiums

Generally

Commentary – Quick Overview ¶22260 ; Quick Overview ¶7260 ; Chanda on Property Investment 11.1

Sale and leaseback

Commentary – Quick Overview ¶22230 ; Quick Overview ¶7230

Sale of land with leaseback

Commentary – Tax Reporter ¶300-170

Sale of land with right to reconveyance

Commentary – Tax Reporter ¶300-160

Short lease

Commentary – Chanda on Property Investment 10.7

Short leases

Grant of lease at undervalue

Commentary – Quick Overview ¶22210 ; Quick Overview ¶7235

Lump sum rents and surrender payments

Commentary – Quick Overview ¶22215 ; Quick Overview ¶7215

Portion of premium treated as rent

Commentary – Quick Overview ¶22210 ; Quick Overview ¶7210

Premium foregone treated as income

Commentary – Quick Overview ¶22235 ; Quick Overview ¶7235

Sale and leaseback income charges

Commentary – Quick Overview ¶22230 ; Quick Overview ¶7230

Sale proceeds as income where right to reconveyance

Commentary – Quick Overview ¶22225 ; Quick Overview ¶7225

Waiver or variation of terms

Commentary – Quick Overview ¶22220 ; Quick Overview ¶7220

Short-term lease

Generally

Legislation/Regulatory – ITTOIA2005 s. 277

Meaning

Legislation/Regulatory – ITTOIA2005 s. 276

Short-term leases

Generally

Commentary – Tax Reporter ¶300-120

Surrender of

Commentary – Tax Reporter ¶300-130

Short-term leases (CGT definition)

Commentary – Chanda on Property Investment 10.4

Statutory overview

Commentary – Chanda on Property Investment 10.2

Sublease granted out of short lease

Commentary – Chanda on Property Investment 10.8

Surrender of lease, sums payable for

Legislation/Regulatory – ITTOIA2005 s. 280, 287-290

Tax relief for tenant

Assigned lease

Commentary – Chanda on Property Investment 10.7.3

Long lease

Commentary – Chanda on Property Investment 10.6.2

Short lease

Commentary – Chanda on Property Investment 10.7.2 ; Chanda on Property Investment 10.8.2

Taxed leases, relief from charge

Commentary – Tax Reporter ¶300-180 ; Tax Reporter ¶711-525

Variation of lease terms

Commentary – Chanda on Property Investment 14.3

Variation or waiver of term of lease, sums payable for

Legislation/Regulatory – ITTOIA2005 s. 281, 287-290

Variations and waivers, payments for

Commentary – Tax Reporter ¶300-140
Case Law – Banning v. Wright (H.M. Inspector of Taxes)

Waiver or variation of terms

Commentary – Quick Overview ¶22220 ; Quick Overview ¶7220

Work done by tenant

Commentary – Quick Overview ¶7210

Work required on premises

Legislation/Regulatory – ITTOIA2005 s. 278
HMRC Guidance – CG70840