HC Deb 03 December 1996 vol 286 cc929-30

Resolved, That section 120 of the Income and Corporation Taxes Act 1988 shall be amended as follows.

(1) In subsection (1)—

  1. (a) at the beginning there shall be inserted "Subject to subsection (1A) below,"; and
  2. (b) the words from "and, subject to" onwards shall be omitted.

(2) After subsection (1) there shall be inserted the following subsection— (1A) If—

  1. (a) the profits and gains arising to any person for any chargeable period include both rent in respect of any such easement as is mentioned in subsection (1) above and amounts which are charged to tax under Schedule A, and
  2. (b) some or all of the land to which the easement relates is included in the land by reference to which the amounts charged under Schedule A arise,
then, for that period, that rent shall be charged to tax under Schedule A, instead of being charged under Schedule D."

(3) Subsections (2) to (4) and, in subsection (5), paragraph (c) and the word "and" immediately preceding it shall cease to have effect.

(4) This Resolution has effect in relation to payments made on or after 6th April 1997.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.