Income Tax Act 2007

Land use

CC 1 Land
Income

(1)

An amount described in subsection (2) is income of the owner of land if they derive the amount from—

(a)

a lease, licence, or easement affecting the land; or

(b)

the grant of a right to take the profits of the land.

Amounts

(2)

The amounts are—

(a)

rent:

(b)

a fine:

(c)

a premium:

(d)

a payment for the goodwill of a business:

(e)

a payment for the benefit of a statutory licence:

(f)

a payment for the benefit of a statutory privilege:

(g)

other revenues.

Amounts derived from certain assets

(2B)

Despite subsections (1) and (2), an amount referred to in section CW 8B (Certain amounts derived from use of assets) is not a payment of rent or another amount for the purposes of this section.

Exception for amount from grant of easement

(2C)

An amount is not income of the owner of a fee simple estate in land if the amount is derived as consideration for the grant, for the duration of the estate, of an easement over the land and is not a periodic payment.

Relationship with section GC 5

(3)

The treatment of leases of property to related parties for less than an adequate rent is dealt with in section GC 5 (Leases for inadequate rent).

Defined in this Act: amount, business, income, lease, own, pay

Compare: 2004 No 35 s CC 1

Section CC 1(2B) heading: inserted (with effect on 1 April 2013 and applying for the 2013–14 and later income years), on 17 July 2013, by section 6(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section CC 1(2B): inserted (with effect on 1 April 2013 and applying for the 2013–14 and later income years), on 17 July 2013, by section 6(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section CC 1(2C) heading: inserted, on 1 April 2015, by section 9 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section CC 1(2C): inserted, on 1 April 2015, by section 9 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).