Income Tax (Trading and Other Income) Act 2005 section 336

Meaning of "rent receivable in connection with a UK section 12(4) concern"

Section 336 defines when rent from UK land is treated as receivable in connection with a concern listed in section 12(4) (such as mines, quarries and similar operations), and clarifies the broad meaning of "rent" for this purpose.

• Rent from a UK land interest used in connection with a section 12(4) concern (such as a mine or quarry) falls within this Chapter's rules
• "Dead rents" — flat rents payable whether or not minerals are worked, which can be recouped by reducing future royalties — are also caught by these rules
• "Rent" is defined broadly to include receipts mentioned in section 266(3) and any other receipt that is in the nature of rent
• The rules apply only to UK land; if a section 12(4) concern is located outside the UK, any related income falls under overseas income provisions instead