Corporation Tax Act 2009 section 39

Lease premiums: pre-commencement receipts under ICTA treated as taxed receipts

Section 39 explains how lease premium receipts that arose under the old ICTA rules (before the Corporation Tax Act 2009 took effect) are carried forward and treated as "taxed receipts" for the purposes of the current additional calculation rules in sections 227 to 235.

• Lease premium receipts taxed under the old ICTA sections 34 or 35 (for tax years before 2005–06 or accounting periods ending before 1 April 2009) are recognised as "ICTA pre-commencement receipts" and treated as taxed receipts under the current rules.
• The receipt period for these taxed receipts is either the full duration of the lease (for section 34 premiums) or the remaining duration from the date of assignment (for section 35 premiums).
• The unreduced amount of the taxed receipt is the gross amount calculated under ICTA sections 34 or 35, before any reductions that would have applied under ICTA section 37(2) or (3).
• Where the tenant was obliged under the lease to carry out work qualifying for capital allowances, the unreduced amount of the taxed receipt is calculated as if that work had not been part of the obligation.

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