Taxation in the United Kingdom/Legislation/Section 24 of the Income and Corporation Taxes Act 1988

This section makes some definitions for the purposes of Part 2 of ICTA (except where the context otherwise requires).

The following are defined:

lease includes an agreement for a lease, and any tenancy, but does not include a mortgage or heritable security, and lessee, lessor and letting shall be construed accordingly; lessee and lessor include respectively the successors in title of a lessee or a lessor; premises includes any land; and premium includes any like sum, whether payable to the immediate or a superior landlord or to a person connected (within the meaning of section 839) with the immediate or a superior landlord.

Any sum (other than rent) paid on or in connection with the granting of a tenancy is presumed to have been paid by way of premium except in so far as other sufficient consideration for the payment can be shown to have been given.

Where paragraph (c) of section 38(1) (rules for ascertaining the duration of leases) applies, the premium, or an appropriate part of the premium, payable for or in connection with either lease mentioned in that paragraph may be treated as having been required under the other.

References in this section to a sum shall be construed as including the value of any consideration, and references to a sum paid or payable or to the payment of a sum shall be construed accordingly.

In the application of this Part to Scotland-

assignment means an assignation; intermediate landlord means, where an occupying lessee is a sub-lessee, any person for the time being holding the interest of landlord under a sub-lease which comprises the property of which the occupying lessee is sub-lessee, but does not include the immediate landlord; premium includes in particular a grassum payable to any landlord or intermediate landlord on the creation of a sub-lease; and reversion means the interest of the landlord in the property subject to the lease.

References to a lease extend only to a lease conferring a right, as against the person whose interest is subject to the lease, to the possession of the premises; and rent includes a payment by the tenant to defray the cost of work of maintenance of, or repairs to, the demised premises, not being work required by the lease to be carried out by the tenant.