Commentary

B6.304 Sums payable for surrender of lease

Business tax
Business tax | Commentary

B6.304 Sums payable for surrender of lease

Business tax | Commentary

B6.304 Sums payable for surrender of lease

A similar set of rules to those described in B6.301 applies if the terms of a short-term lease provide that a sum becomes payable by the tenant as consideration for the surrender of the lease1.

The person (or company) who is due to receive the sum (not necessarily the landlord) is treated as entering into a property business transaction—a UK property business if the land to which the lease relates is in the UK or an overseas property business otherwise—and the deemed income (calculated below) is treated as a receipt of the business for

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial