Corporation Tax Act 2010 section 849

Overview of Chapter

Section 849 provides an overview of the Chapter dealing with the tax treatment of land lease assignments, surrenders and grants, including how consideration is taxed and how relief is given for rent.

• Where a lease of land is assigned or surrendered and another lease is granted or assigned, consideration received for the first lease may be taxed as a trade receipt or charged to corporation tax on income.
• Tax relief is available for rent payable under the replacement lease.
• In certain circumstances, a variation of a lease is treated as if the original lease were surrendered and a new lease granted.
• The meaning of "lease" for the purposes of this Chapter is defined separately in section 862.