Where a sum becomes payable by the tenant either:
- Ìý
(a)ÌýÌýÌýÌý instead of rent for any period, under the terms subject to which a lease is granted, or
- Ìý
(b)ÌýÌýÌýÌý otherwise than by way of rent, as consideration for the variation or waiver of any of the terms of a lease,
part of the sum is taxed as income of the recipient at the time the sum is payable as a receipt of a property business, computed by a formula similar to that used for a premium (see B6.302)1. See also C2.1230A for the similar treatment of a payment received under the terms of a lease for its surrender.
For capital gains purposes, the lease is deemed to have required the payment of a premium to the landlord (in addition to any other premium) of the amount of that sum:
- Ìý
•
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