Income Tax Act 2007 section 681B

Overview

Section 681B provides an overview of the Chapter dealing with the income tax consequences when a lease of land is assigned, surrendered, or varied, and another lease is granted or assigned in its place.

• When a lease of land is assigned or surrendered, any consideration received is taxed as a trading receipt or charged to income tax
• Tax relief is available for rent payable under a replacement lease that is granted or assigned
• Where an existing lease is varied, the tax rules treat it as if the original lease has been surrendered and a new lease has been granted
• These rules apply to assignments (transfers), surrenders (giving up a lease), and variations of lease terms alike