Capital Allowances Act 2001 section 270IH

Meaning of "lease" etc.

Section 270IH defines what "lease" and related terms mean for the purposes of the structures and buildings allowances rules.

• A "lease" is broadly defined to include agreements for a lease (where the term has begun), any tenancy, and equivalent interests in land outside the United Kingdom
• A mortgage is specifically excluded from the definition of lease, and related terms such as "lessee", "lessor" and "leasehold interest" follow the same interpretation
• In Scotland, a "leasehold interest" (or "leasehold estate") means the tenant's interest in property that is subject to a lease
• References to a reversionary interest on a lease are, in Scotland, to be read as references to the landlord's interest in the property subject to that lease