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Exclusion of premiums taxed under Case V of Schedule D

(5) Section 551 shall not be taken as authorising the exclusion of any amount from the consideration for a disposal of assets taken into account in the computation of the gain under Chapter 2 of Part 19 by reference to any amount chargeable to tax under section 75 and Chapter 8 of Part 4.

(5) Section 551 shall not be taken as authorising the exclusion of any amount from the consideration for a disposal of assets taken into account in the computation of the gain under Chapter 2 of Part 19 by reference to any amount chargeable to tax under section 75 and Chapter 8 of Part 4.

(5) Section 551 shall not be taken as authorising the exclusion of any amount from the consideration for a disposal of assets taken into account in the computation of the gain under Chapter 2 of Part 19 by reference to any amount chargeable to tax under section 75 and Chapter 8 of Part 4.

(1) Where by reference to any premium income tax has become chargeable under section 98 on any amount, that amount shall be excluded from the consideration taken into account in the computation under Chapter 2 of Part 19 of a gain accruing on a disposal of the interest in respect of which income tax becomes so chargeable, except where in an apportionment under section 557 the value of the consideration is taken into account in the aggregate of that value and the market value of the property which remains undisposed of.

(2) Where by reference to any premium in respect of a sub-lease granted out of a lease, being a lease the duration of which does not at the time of granting the lease exceed 50 years, income tax has become chargeable under section 98 on any amount, that amount shall be deducted from any gain (as computed in accordance with the provisions of the Capital Gains Tax Acts apart from this subparagraph) accruing on the disposal for which the premium is consideration, but not so as to convert the gain into a loss or to increase any loss.

(4) References in subparagraphs (1) and (2) to a premium include references to a premium deemed to have been received under subsection (3) or (4) of section 98.

8. If under section 98(2) income tax is chargeable on any amount as being a premium the payment of which is deemed to be required by the lease, the person so chargeable shall be treated for the purposes of the computation of any gain accruing to that person on the disposal by means of the grant of the lease, and on any subsequent disposal of the asset out of which the lease was granted, as having incurred at the time the lease was granted expenditure of that amount (in addition to any other expenditure) attributable to the asset under section 552(1)(b).

(2) Nothing in section 551 shall be taken as applying in relation to any amount on which tax is paid under section 99.

(3) (a) Subject to clause (b), where income tax has become chargeable under section 100 on any amount (in this subparagraph referred to as “the relevant amount”), the relevant amount shall be excluded from the consideration taken into account in the computation under Chapter 2 of Part 19 of a gain accruing on the disposal of the estate or interest in respect of which income tax becomes so chargeable, except where in an apportionment made under section 557 the value of the consideration is taken into account in the aggregate of that value and the market value of the property which remains undisposed of.

(3) Where any adjustment is made under paragraph (b) of section 100(2), on a claim under that paragraph, any necessary adjustment shall be made to give effect to the consequences of the claim on the operation of this paragraph or paragraph 6.

(1) Where under section 103(2) a person is to be treated as paying additional rent in consequence of having granted a sub-lease, the amount of any loss accruing to such person on the disposal by means of the grant of the sub-lease shall be reduced by the total amount of the rent which such person is thereby treated as paying over the term of the sub-lease (and without regard to whether relief is thereby effectively given over the term of the sub-lease), but not so as to convert the loss into a gain or to increase any gain.

(4) Accordingly, for the purposes of the computation under Chapter 2 of Part 19 of the gain accruing on a disposal of a lease, and where—

(2) In the computation under Chapter 2 of Part 19 of the gain accruing on the part disposal of a lease by means of the grant of a sub-lease for a premium (in this paragraph referred to as “the actual premium”), the expenditure attributable to the lease under paragraphs (a) and (b) of section 552(1) shall be apportioned in accordance with this paragraph, and section 557 shall not apply.

(1) Where by reference to any premium income tax has become chargeable under section 98 on any amount, that amount shall be excluded from the consideration taken into account in the computation under Chapter 2 of Part 19 of a gain accruing on a disposal of the interest in respect of which income tax becomes so chargeable, except where in an apportionment under section 557 the value of the consideration is taken into account in the aggregate of that value and the market value of the property which remains undisposed of.

(3) (a) Subject to clause (b), where income tax has become chargeable under section 100 on any amount (in this subparagraph referred to as “the relevant amount”), the relevant amount shall be excluded from the consideration taken into account in the computation under Chapter 2 of Part 19 of a gain accruing on the disposal of the estate or interest in respect of which income tax becomes so chargeable, except where in an apportionment made under section 557 the value of the consideration is taken into account in the aggregate of that value and the market value of the property which remains undisposed of.

(5) Section 551 shall not be taken as authorising the exclusion of any amount from the consideration for a disposal of assets taken into account in the computation of the gain under Chapter 2 of Part 19 by reference to any amount chargeable to tax under section 75 and Chapter 8 of Part 4.

(4) Accordingly, for the purposes of the computation under Chapter 2 of Part 19 of the gain accruing on a disposal of a lease, and where—

(2) In the computation under Chapter 2 of Part 19 of the gain accruing on the part disposal of a lease by means of the grant of a sub-lease for a premium (in this paragraph referred to as “the actual premium”), the expenditure attributable to the lease under paragraphs (a) and (b) of section 552(1) shall be apportioned in accordance with this paragraph, and section 557 shall not apply.

(1) Where by reference to any premium income tax has become chargeable under section 98 on any amount, that amount shall be excluded from the consideration taken into account in the computation under Chapter 2 of Part 19 of a gain accruing on a disposal of the interest in respect of which income tax becomes so chargeable, except where in an apportionment under section 557 the value of the consideration is taken into account in the aggregate of that value and the market value of the property which remains undisposed of.

(3) (a) Subject to clause (b), where income tax has become chargeable under section 100 on any amount (in this subparagraph referred to as “the relevant amount”), the relevant amount shall be excluded from the consideration taken into account in the computation under Chapter 2 of Part 19 of a gain accruing on the disposal of the estate or interest in respect of which income tax becomes so chargeable, except where in an apportionment made under section 557 the value of the consideration is taken into account in the aggregate of that value and the market value of the property which remains undisposed of.

(5) Section 551 shall not be taken as authorising the exclusion of any amount from the consideration for a disposal of assets taken into account in the computation of the gain under Chapter 2 of Part 19 by reference to any amount chargeable to tax under section 75 and Chapter 8 of Part 4.

(5) Section 551 shall not be taken as authorising the exclusion of any amount from the consideration for a disposal of assets taken into account in the computation of the gain under Chapter 2 of Part 19 by reference to any amount chargeable to tax under section 75 and Chapter 8 of Part 4.

(2) Nothing in section 551 shall be taken as applying in relation to any amount on which tax is paid under section 99.

(2) Where at the beginning of the period of ownership of a lease of land it is subject to a sub-lease not at a rent representing the full value of the land together with any buildings on the land, and the value of the lease at the end of the duration of the sub-lease, estimated as at the beginning of the period of ownership, exceeds the expenditure allowable under section 552(1)(a) in computing the gain accruing on a disposal of the lease, the lease shall not be a wasting asset until the end of the duration of the sub-lease.

(b) the percentage so derived for the duration of the lease at the time when any item of expenditure attributable to the lease under section 552(1)(b) is first reflected in the nature of the lease is P (2), and

(i) there shall be excluded from the expenditure attributable to the lease under section 552(1)(a) a fraction equal to—

(ii) there shall be excluded from any item of expenditure attributable to the lease under section 552(1)(b) a fraction equal to—

(ii) that consideration were expenditure incurred by the sub-lessee and attributable to that part of the sub-lease under section 552(1)(b).

(2) In the computation under Chapter 2 of Part 19 of the gain accruing on the part disposal of a lease by means of the grant of a sub-lease for a premium (in this paragraph referred to as “the actual premium”), the expenditure attributable to the lease under paragraphs (a) and (b) of section 552(1) shall be apportioned in accordance with this paragraph, and section 557 shall not apply.

(3) Out of each item of the expenditure attributable to the lease under paragraphs (a) and (b) of section 552(1) there shall be apportioned to the part disposal—

(4) Where the sub-lease is a sub-lease of only part of the land comprised in the lease, this paragraph shall apply only in relation to a proportion of the expenditure attributable to the lease under paragraphs (a) and (b) of section 552(1) which is the same as the proportion which the value of the land comprised in the sub-lease at the time when the sub-lease is granted bears to the value of that land and the other land comprised in the lease at that time, and the remainder of that expenditure shall be apportioned to the other land.

8. If under section 98(2) income tax is chargeable on any amount as being a premium the payment of which is deemed to be required by the lease, the person so chargeable shall be treated for the purposes of the computation of any gain accruing to that person on the disposal by means of the grant of the lease, and on any subsequent disposal of the asset out of which the lease was granted, as having incurred at the time the lease was granted expenditure of that amount (in addition to any other expenditure) attributable to the asset under section 552(1)(b).

(2) In applying section 557 to such a part disposal, the property which remains undisposed of shall include a right to any rent or other payments (other than a premium) payable under the lease, and that right shall be valued as at the time of the part disposal.

(2) In the computation under Chapter 2 of Part 19 of the gain accruing on the part disposal of a lease by means of the grant of a sub-lease for a premium (in this paragraph referred to as “the actual premium”), the expenditure attributable to the lease under paragraphs (a) and (b) of section 552(1) shall be apportioned in accordance with this paragraph, and section 557 shall not apply.

(1) Where by reference to any premium income tax has become chargeable under section 98 on any amount, that amount shall be excluded from the consideration taken into account in the computation under Chapter 2 of Part 19 of a gain accruing on a disposal of the interest in respect of which income tax becomes so chargeable, except where in an apportionment under section 557 the value of the consideration is taken into account in the aggregate of that value and the market value of the property which remains undisposed of.

(3) (a) Subject to clause (b), where income tax has become chargeable under section 100 on any amount (in this subparagraph referred to as “the relevant amount”), the relevant amount shall be excluded from the consideration taken into account in the computation under Chapter 2 of Part 19 of a gain accruing on the disposal of the estate or interest in respect of which income tax becomes so chargeable, except where in an apportionment made under section 557 the value of the consideration is taken into account in the aggregate of that value and the market value of the property which remains undisposed of.

(3) In the case of a wasting asset which is a lease of land, the rate at which expenditure is assumed to be written off shall, instead of being a uniform rate as provided by section 560(3), be a rate fixed in accordance with the Table to this paragraph.

(6) Section 561 shall apply in relation to this paragraph as it applies in relation to subsections (3) to (5) of section 560.

(6) Section 561 shall apply in relation to this paragraph as it applies in relation to subsections (3) to (5) of section 560.

Section 566.