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100A. Appeals against determinations under sections 98 to 100

(1) Before making a determination of any amount on which a person may be chargeable to tax by virtue of section 98, 99 or 100, which determination the inspector considers may affect the liability to tax of any other person, the inspector shall—

(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).

(a) where the amount chargeable arose under section 98, the period treated in computing that amount as being the duration of the lease;

(a) has become chargeable to tax under subsection (1), (2), (3), (4) or (5) of section 98 or under section 99 or 100, or

(3) Where the amount chargeable arose under section 98(2) by reason of an obligation which included the incurring of expenditure in respect of which any allowance has been or will be made under Part 9, this section shall apply as if the obligation had not included the incurring of that expenditure and the amount chargeable had been calculated accordingly.

(a) where the amount arose under section 98, the period treated in computing that amount as being the duration of the lease;

(3) Where in relation to any premises an amount has become or would have become chargeable to tax as mentioned in section 102(2), and by reference to a lease granted out of, or a disposition of, the lease, estate or interest by reference to which the amount (in this section referred to as “the prior chargeable amount”) so became or would have so become chargeable, a person would apart from this subsection be chargeable under section 98, 99 or 100 on any amount (in this section referred to as “the later chargeable amount”), the amount on which the person is so chargeable shall be the excess, if any, of the later chargeable amount over the appropriate fraction of the prior chargeable amount or, where the lease or disposition by reference to which the person would be so chargeable extends to a part only of that premises, the excess, if any, of the later chargeable amount over so much of the appropriate fraction of the prior chargeable amount as on a just apportionment is attributable to that part of the premises.

(6) Where the prior chargeable amount arose under section 98(2) by reason of an obligation which included the incurring of expenditure in respect of which any allowance has been or will be made under Part 9, this section shall apply as if the obligation had not included the incurring of that expenditure and the prior chargeable amount had been calculated accordingly.

(iv) subject to subsection (2), where consideration (other than rent or an amount treated or, as respects consideration received on or after the 26th day of March, 1997, partly treated as rent under section 98) is received by the person entitled to the relevant interest in respect of an interest which is subject to that relevant interest,

“premium” includes any capital consideration except so much of any sum as corresponds to any amount of rent or profits which is to be computed by reference to that sum under section 98;

(2) (a) Any consideration (other than rent or an amount treated as rent under section 98) for the disposal of an interest in any land or in a part of any land shall be treated as a consideration for the disposal of trading stock and accordingly shall be taken into account as a trading receipt.

947Appeals against determination under sections 98 to 100.

(1) Where it appears to the inspector that the determination of any amount on which a person may be chargeable to income tax or corporation tax by virtue of section 98, 99 or 100 may affect the liability to income tax or corporation tax of other persons, the inspector shall give notice in writing to those persons as well as to the first-mentioned person of the determination the inspector proposes to make and of the rights conferred on them by this section.

(b) Paragraph (a) shall be applied by reference to the facts which were known or ascertainable at the time of the grant of the lease or, in relation to tax under section 98(4), at the time when the contract providing for a variation or waiver of a kind referred to in section 98(4) is entered into, and in applying paragraph (a)—

(b) Paragraph (a) shall be applied by reference to the facts which were known or ascertainable at the time of the grant of the lease or, in relation to tax under section 98(4), at the time when the contract providing for a variation or waiver of a kind referred to in section 98(4) is entered into, and in applying paragraph (a)—

the amount of the excess, in so far as it is not greater than the amount forgone reduced by the amount of any such excess arising on a previous assignment of the lease, shall, in the same proportion as the amount forgone would under section 98(1) have been treated as rent if it had been a premium under a lease, be treated as profits or gains of the assignor chargeable to the tax under Case IV of Schedule D.