Commentary

B6.309 Additional calculation rule

Business tax
Business tax | Commentary

B6.309 Additional calculation rule

Business tax | Commentary

B6.309 Additional calculation rule

The additional calculation rule is a device that ensures that a property is not doubly taxed under the rules described above. It therefore applies if:

  1.  

    (1)     either:

    1.  

      (a)     there is a lease premium on a short-term lease (B6.301);

    2.  

      (b)     there is a sum paid on a lease instead of rent (B6.303);

    3.  

      (c)     a sum is paid for the surrender of a lease (B6.304);

    4.  

      (d)     a sum is paid for the variation or waiver of a lease term (B6.305); or

    5.  

      (e)     a lease granted at an undervalue is assigned for profit (B6.306); and

  2.  

    (2)     either:

    1.  

      (a)     (in the first four scenarios) the lease is or was granted out of a lease that was subject to the rules set out above (a 'taxed lease'); or

    2.  

      (b)     (in the case of the assignment of a lease) that lease was itself subject to these rules1.

As can be seen, the additional calculation rule does not apply in cases where income is charged in respect of a sale with a right to a reconveyance (B6.307) or a right to a leaseback (B6.308).

Where the additional calculation rule applies, the

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