Income Tax Act, 1967.

Taxation of rents under long leases and certain other payments.

93.—(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 (b) of Schedule D by virtue of section 53,

(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) or such a rentcharge as is mentioned in section 18 (5),

being a payment falling due on or after the 6th day of April, 1963.

In paragraph (a) 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 section 18 (1) nor section 18 (3) 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 IV of that Schedule, and

(b) subject to section 104, be treated, for the purposes of paragraph (m) of section 61 and of sections 433 and 434 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 subsection (1) (a) is rendered in produce of the concern, this subsection shall have effect as if paragraph (b) were omitted; and the value of the produce so rendered shall be taken to be the amount of profits or income arising therefrom.

(4) Section 8 (2) shall have effect as if “other annual payment”, in both places where occurring in that subsection, included a reference to any payment to which this section applies not being a payment of rent, interest or annuity.