Income Tax Act 2007 section 681AL

Lease and rent

Section 681AL defines what "lease" and "rent" mean for the purposes of this Chapter, ensuring these terms are interpreted broadly enough to cover a wide range of property arrangements.

• A "lease" includes underleases, subleases, tenancies, licences, agreements for any of these, and equivalent interests in land outside the United Kingdom
• "Rent" means any payment made under a lease, not just traditional periodic rental payments
• Rent also includes certain deemed expenses that a tenant is treated as incurring under the lease premium rules in ITTOIA 2005 (sections 61–67 for trade land and sections 292–297 for taxed leases)
• Any such deemed expenses are treated as having been paid at the point they were incurred, not at any later date