Corporation Tax Act 2009 section 220

Sums payable for surrender of lease

Section 220 deals with the tax treatment of sums payable for the surrender of a lease, and specifically excludes certain historic leases from its scope.

• Section 220 charges tax on sums received for surrendering a lease as if they were lease premiums.
• This provision does not apply to leases granted before 6 April 1963.
• Leases granted under contracts entered into before 4 April 1963 are also excluded.
• These exclusions preserve the tax treatment that applied to historic lease arrangements before the rules on lease premiums were introduced.