Taxation (International and Other Provisions) Act 2010 section Schedule 9 paragraph 41

New lease of land after assignment or surrender: right to new lease existed pre-22 June 1971

Schedule 9 paragraph 41 deals with the tax treatment of rent under a new lease of land granted after the assignment or surrender of an earlier lease, where the right to that new lease existed before 22 June 1971.

• This paragraph applies where the standard conditions for a new lease after assignment or surrender are met, but the right to the new lease existed before 22 June 1971
• The rent must be payable by a person who is within the charge to income tax
• No part of the rent paid under the new lease is to be treated as a capital payment
• The tenant is entitled to full income tax relief for the rent, with normal deductions and allowances applying as they would for any other rent payment