Introduction Overview Overview Section 835: Transferor or associate becomes liable for payment of rent
2467.This section sets out the conditions for section 838 or, as the case may be, section 839 to apply in a case involving the payment of rent. It is based on section 779(1), (3), (13) and (14) of ICTA.
2468.Subsection (1) lists the conditions which must be met if section 838 (relevant corporation tax relief: deduction not to exceed commercial rent) is to apply.
2469.The words “rent” and “lease” appear for the first time in this Chapter in subsection (1)(b). They are defined in section 846.
2470.Subsection (2) lists the conditions which must be met if section 839 (deduction under section 76 of ICTA not to exceed commercial rent) is to apply.
2471.Subsection (3) explains what is meant in subsections (1)(a) and (2)(a) by “transferring” an estate or interest in land.
2472.Subsection (4) explains what is meant in this Chapter by the “transferor”.
2473.Subsections (5) and (6) explain what is meant in subsections (1)(b) and (2)(b) by becoming “liable” to make a payment.
2474.Subsection (7) preserves the rule that, if the transfer was made before the legislation was first introduced, a lease-back after that date does not activate the legislation.