Finance Act, 1996
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Amendment of section 10 (exemption of certain income from leasing of farm land) of Finance Act, 1985. |
10.— Section 10 of the Finance Act, 1985 , is hereby amended, as respects a qualifying lease (within the meaning of that section) or qualifying leases made on or after the 23rd day of January, 1996, by the substitution in paragraph (a) of subsection (1) of the following definition for the definition of “the specified amount”: | |
“‘the specified amount’, in relation to any surplus or surpluses (within the meaning of section 81 (4) of the Income Tax Act, 1967 ) arising in respect of the rent or the rents from any farm land let under a qualifying lease or qualifying leases, means— | ||
(i) the amount of that surplus or the aggregate amount of those surpluses, or | ||
(ii) £4,000, or | ||
(iii) where the rent or rents were not receivable in respect of a full year's letting or lettings, such amount as bears to £4,000 the same proportion as the amount of the rent or the aggregate amount of the rents bears to the amount of the rent or the aggregate amount of the rents which would be receivable for a full year's letting or lettings, | ||
whichever is the least: | ||
Provided that— | ||
(I) where a qualifying lease is for a definite term of seven years or more, the reference in paragraphs (ii) and (iii) to £4,000 shall have effect as if each were a reference to £6,000; | ||
(II) where the income of a qualifying lessor consists of, or includes, rent or rents from a qualifying lease or qualifying leases made before the 23rd day of January, 1996, and from a qualifying lease or qualifying leases made on or after that date, the specified amount shall not exceed £4,000 or, as may be appropriate, £6,000.”. |