Corporation Tax Act 2009 section 221A

Sums to which sections 217 to 221 do not apply

Section 221A disapplies the lease premium tax rules where the grant of a lease forms part of a finance arrangement.

• Sections 217 to 221 normally charge lease premiums and similar sums as property income profits
• Where the grant of a lease constitutes a disposal of an asset under a Type 1 or Type 2 finance arrangement, those premium rules are switched off
• Finance arrangements are defined in sections 758 and 763 of CTA 2010 and deal with arrangements that are, in substance, financing transactions
• Any premium paid in respect of such a lease grant is therefore dealt with under the finance arrangement rules rather than the lease premium rules