Section EZ 8 — Income Tax Act 2007: Premium paid on land leased before 1 April 1993

EZ 8 Premium paid on land leased before 1 April 1993 When this section applies (1) This section applies when section DZ 9 (Premium paid on land leased before 1 April 1993) applies. Amount of deduction (2) The amount of the deduction is the premium paid on the grant or renewal of the lease. If person A does not use the land for the whole of a tax year, the amount of the deduction is reduced proportionately. Amount when lease or renewal granted to another person (3) If the lease or the renewal of the lease is granted to another person, the deduction must not be more than the amount of the premium paid by person A on the acquisition of the lease. Timing of deduction (4) The deduction is allocated evenly to the income years in relation to which the term of the lease applies. Meaning of term of the lease (5) In this section, term of the lease , for a lease of indefinite duration, means the minimum period it has to run. Defined in this Act: amount , deduction , income year , lease , pay , premium , tax year , term of the lease , Compare: 2004 No 35 s EZ 6