Corporation Tax Act 2009 section 219

Lease premiums: sums payable instead of rent

Section 219 deals with the transitional rules that restrict the application of the provisions taxing lump sums paid instead of rent under certain older leases.

• Section 219 treats certain lump sums paid by a tenant instead of rent as taxable receipts of a property business.
• This transitional rule disapplies Section 219 for leases granted before 6 April 1963.
• It also disapplies Section 219 where the lease was granted under a contract entered into before 4 April 1963.
• In practice, this exemption protects landlords with very old lease arrangements from being taxed on sums that were agreed before the relevant legislation came into force.