Finance Act, 1963
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Taxation of rents under long leases and certain other payments. |
94.—(1) This section applies to the following payments: | |
(a) any rent payable in respect of any premises the property in which is not separately assessed and charged under Schedule A, or in respect of any easement, where the premises or easement is used, occupied or enjoyed in connection with any of the concerns the profits of which are chargeable to tax under Case I of Schedule D by virtue of section 8 of the Finance Act, 1929 , | ||
(b) any rent payable in respect of any premises, other than premises used, occupied or enjoyed as aforesaid, under a long lease, and | ||
(c) any yearly interest, annuity, rentcharge, fee farm rent or other annual payment reserved in respect of, or charged on or issuing out of, any premises, not being a rent payable under a lease or in respect of premises used, occupied or enjoyed as mentioned in paragraph (a) of this subsection or such a rentcharge as is mentioned in Rule 6 of No. VIII of Schedule A, | ||
being a payment falling due on or after the 6th day of April, 1963. | ||
In paragraph (a) of this subsection the reference to rent shall be deemed to include a reference to a toll, duty, royalty or annual or periodical payment in the nature of rent, whether payable in money or money's worth or otherwise. | ||
(2) Neither Rule 1 nor Rule 4 of No. VIII of Schedule A shall have effect in relation to any payment to which this section applies. | ||
(3) Any payment to which this section applies shall— | ||
(a) so far as it does not fall within any other Case of Schedule D, be charged with tax under Case VI of that Schedule, and | ||
(b) be treated, for the purposes of paragraph (m) of Rule 3 of the Rules applicable to Cases I and II of Schedule D and of Rules 19 and 21 of the General Rules, as if it were a royalty paid in respect of the user of a patent: | ||
Provided that where such a rent as is mentioned in paragraph (a) of subsection (1) of this section is rendered in produce of the concern, this subsection shall have effect as if paragraph (b) of this subsection were omitted; and the value of the produce so rendered shall be taken to be the amount of profits or income arising therefrom. | ||
(4) (a) A deduction from a payment to which this section applies, made on account of income tax at any time after the 5th day of April, 1963, and before the passing of this Act, which would have been a legal deduction if the foregoing provisions of this section had been in force at that time, shall be deemed for all purposes to have been a legal deduction to which all the provisions of Rule 19 or Rule 21 of the General Rules, as the case may be, were applicable. | ||
(b) Subsection (2) of section 211 of the Income Tax Act, 1918, shall have effect as if this section had come into operation on the 6th day of April, 1963, and “other annual payment”, in both places where occurring in that subsection, shall be construed as including a reference to any payment to which this section applies not being a payment of rent, interest or annuity. |