Section 276 | Introduction

(1)This Chapter provides for certain amounts (which would otherwise generally be amounts of a capital nature) to be brought into account as receipts in calculating the profits of a property business.

(2)The amounts relate to short-term leases in the case of—

section 277 (lease premiums),

section 278 (amount treated as lease premium where work required),

section 280 (sums payable for surrender of lease), and

section 282 (assignments for profit of lease granted at undervalue).

(3)The amounts relate to any lease in the case of—

section 279 (sums payable instead of rent), and

section 281 (sums payable for variation or waiver of terms of lease).

(4)The amounts relate to the sale of any estate or interest in land in the case of—

section 284 (sales with right to reconveyance), and

section 285 (sale and leaseback transactions).

(5)This Chapter also permits certain deductions in calculating the profits of property businesses carried on by tenants under certain leases (see sections 291 and 292 ; but see also section 276A).

(6)In this Chapter “short-term lease” means a lease whose effective duration is 50 years or less.