Income Tax (Trading and Other Income) Act 2005 section 280

Lease premiums: sums payable for surrender of lease

Section 280 deals with how sums payable for the surrender of a lease are taxed as property income, but this provision is subject to transitional limits based on when the lease was originally granted.

• Section 280 treats amounts received for surrendering a lease as if they were lease premiums liable to tax as property income.
• This rule does not apply to any lease that was granted before 6 April 1963.
• It also does not apply to any lease granted under a contract that was entered into before 4 April 1963.
• Leases granted on or after 6 April 1963, other than under pre-4 April 1963 contracts, fall within the scope of section 280.