46. Payments in lieu of rent or on surrender.

Where, under the terms subject to which a lease1 is granted, a sum becomes payable by the tenant in lieu of the whole or a part of the rent2 for any period3, the person to whom the sum is due is treated as entering into a transaction for the purposes of his UK property business (or, if the land is outside the United Kingdom, his overseas property business)4 and as receiving the specified amount as a result of that transaction; and that amount is brought into account as a receipt in calculating the profits of the property business which