Income Tax (Trading and Other Income) Act 2005 section 277

Lease premiums

Section 277, which deals with the tax treatment of lease premiums, is disapplied for leases granted under contracts entered into before a specified historical date.

• Section 277 sets out rules for the taxation of premiums received when a lease is granted
• This transitional provision exempts leases granted under contracts made before 4th April 1963
• The exemption applies based on the date the contract was entered into, not the date the lease itself was granted
• This means that older lease arrangements predating 4th April 1963 continue to be treated under the tax rules that applied at that time