Corporation Tax Act 2009 section 244

Applying the rules in section 243

Section 244 explains how to apply the rules for determining the effective duration of a lease, including the timing of the assessment, the arm's length assumption, and the treatment of special benefits connected with the lease.

• The effective duration rules are applied based on facts known at the time the lease is granted, or at the time a contract for variation or waiver of lease terms is entered into
• All parties are assumed to be acting at arm's length, regardless of their actual relationship
• Where special benefits have been conferred or unusual payments made in connection with a lease, it is assumed those benefits would not have been provided if the lease had been for a shorter term — unless it can be shown they were not intended to secure a tax advantage
• "Special benefits" means anything beyond normal vacant possession, beneficial occupation, or the right to receive rent at a reasonable commercial rate