Income Tax Act 2007 section 681D

Overview

Section 681D provides an overview of the rules that can impose an income tax charge when a capital sum is obtained in connection with a leased asset.

• This chapter applies where a payment is made under a lease of an asset and a capital sum is obtained in respect of an interest in that asset.
• In those circumstances, an income tax charge may arise on an amount that does not exceed the capital sum obtained.
• The key terms "capital sum" and "lease" are specifically defined elsewhere in the chapter (in sections 681DM and 681DN respectively).
• The section serves as an introductory overview, setting out the scope and purpose of the chapter as a whole.