Commentary on Sections Overview Overview Section 274: Meaning of “mineral lease or agreement” and “mineral royalties”
984.This section defines various terms used in section 273. It is based on section 122 of ICTA. The corresponding rules for income tax are in section 341 of ITTOIA.
985.Section 291 includes a definition of “lease” that applies for the purposes of this Part. It is based on section 24 of ICTA, which applies for the purposes of Schedule A in the source legislation. Because the definition applies only for Schedule A in strictness it does not extend to the income taxed under section 273. But the definition of “mineral lease or agreement” in section 122(6) of ICTA applies to any agreement conferring a right to win and work minerals in the United Kingdom. Such an agreement would also satisfy the definition in section 24 of ICTA so there is no change in the law.
986.The legislation rewritten by subsection (2) does not include any rent receivable before 6 April 1970. This limitation is preserved in Schedule 2 (transitionals and savings).