Income Tax Act 2007 section 681BM

Lease, lessee, lessor and rent

Section 681BM defines the key terms "lease", "lessee", "lessor" and "rent" for the purposes of Chapter 2 (new lease of land after assignment or surrender) of the sale and lease-back provisions.

• A "lease" is broadly defined to include agreements for a lease and any tenancy, but specifically excludes mortgages (and their Scottish equivalents)
• References to "lessee" and "lessor" follow the broad definition of lease and extend to their successors in title
• "Rent" has an extended meaning that covers voluntary payments by a tenant for maintenance or repair work on the leased premises (including land) that the lease does not require the tenant to carry out
• In Scotland, "mortgage" is defined to include a standard security and a heritable security under the Conveyancing (Scotland) Act 1924, including securities constituted by ex facie absolute disposition or assignation