Corporation Tax Act 2009 section 215

Overview of Chapter

Section 215 provides an overview of the Chapter dealing with lease premiums and similar capital amounts that must be treated as property business receipts for corporation tax purposes.

• Certain amounts that would normally be capital in nature are brought into account as taxable receipts of a property business.
• For short-term leases, the rules cover lease premiums, premiums where work is required, sums for lease surrenders, and assignments for profit of undervalue leases.
• For any lease (whether short-term or long-term), the rules cover sums payable instead of rent and sums for variation or waiver of lease terms; for land sales, they cover sales with reconveyance rights and sale-and-leaseback transactions.
• The Chapter also allows tenants under certain leases to claim deductions when calculating their own property business profits.