Foreign Income 30 - Premiums paid for the grant of a lease

If your property rental business income includes premiums paid for the grant of a lease and other lump sum payments, for example, given in connection with the right to possession of a property, these payments are taxable on a special basis.

Broadly, for leases over 50 years we treat the entire premium as a capital receipt and therefore not part of your business income.

For leases up to 50 years we treat the premium as partly capital and partly income; only include the income part in this box.

If you've assigned a lease without requiring payment there may still be a premium charge.