Corporation Tax Act 2010 section 858

Lease treated as ending: rentcharge

Section 858 deals with how rentcharges secured on leased property are treated when applying the rules on rent reductions, lease endings, and lease variations under sections 855 to 857.

• Where the lessee (or a person linked to the lessee) pays a rentcharge secured on all or part of the property subject to the new lease, special rules apply.
• The rent payable under the new lease is treated as equal to the rentcharge plus the actual rent payable under the lease combined.
• This adjusted rent figure is used when applying the rules in sections 855 to 857 concerning rent reductions, deemed lease endings, and lease variations.
• The effect is to prevent the anti-avoidance provisions from being circumvented by splitting payments between rent and a rentcharge.