104 Taxation of certain rents and other payments

Summary

Where rent is payable in respect of premises or easements used in connection with any of the concerns chargeable to tax under Case I(b) of Schedule D (for example, quarries, mines, waterworks, docks, tolls, railways, bridges, ferries – see section 18(2)), the payment is chargeable under Case IV of Schedule D and is subject to deduction of tax at source by the person making the payment. The charge also extends to certain annual payments reserved or charged on premises which are not rents or payments for easements.

Details

(1) The section applies to the following payments, namely, any rent, toll, duty, royalty or annual payment or periodical payment in the nature of rent in respect of any premises or easements used, occupied or enjoyed in connection with any of the concerns listed in Schedule D Case I(b). These concerns are those which derive their profits/gains from quarries, mines, etc. The section also extends to yearly interest, annuities and certain annual payments reserved or charged on premises which are not rents or payments for easements.

(2) These payments are chargeable to tax under Case IV of Schedule D, if not otherwise chargeable to tax under any other Case of Schedule D. They are also treated as if they are royalties paid in respect of the user of a patent and as such are subject to the deduction of tax at source rules which apply to such royalties (see sections 81(2)(m), 237 and 238).

Relevant Date: Finance Act 2019