Section EE 4 — Income Tax Act 2007: Ownership of lessee’s improvements: lessee

EE 4 Ownership of lessee’s improvements: lessee When this section applies (1) This section applies when— (a) a lessee of land incurs expenditure during the period during which the land is leased to the lessee in erecting a fixture on the land or making an improvement to the land; and (b) the lessor owns the fixture or improvement. Ownership of fixture or improvement (2) The following apply to the ownership of the fixture or improvement: (a) in the period during which the land is leased to the lessee,— (i) the lessee is treated as owning the fixture or improvement; and (ii) the lessor is treated as not owning the fixture or improvement; and (iii) a person to whom the lessor disposes of the land during the period is treated as not owning the fixture or improvement; and (b) after the period during which the land is leased to the lessee,— (i) the lessor is treated as not owning the fixture or improvement, unless the lessor incurs a cost relating to it at the end of the period; and (ii) a person to whom the lessor disposes of the land during the period is treated as not owning the fixture or improvement. Defined in this Act: improvement , lessee , lessor , own , Compare: 2004 No 35 s EE 4