Income Tax Act 2007 section 681DH

Sum obtained in respect of lessee's interest

Section 681DH defines what counts as a "sum obtained in respect of the lessee's interest" in a lease of an asset for the purposes of this Chapter.

• The term covers any money or money's worth received when a lessee surrenders their interest back to the lessor, assigns the lease to someone else, or creates a sublease or other interest out of the lease.
• It also captures sums received through any transaction or series of transactions where the lessee's rights are merged with the lessor's rights or with any other rights relating to the asset.
• In the case of a merger of rights, only the portion of the money or money's worth that is attributable to the lessee's rights under the lease is caught.
• The definition is deliberately broad to ensure that any form of consideration — whether cash or non-cash — received in connection with the lessee's interest falls within scope.