Finance Act, 1969

Deduction of tax from certain rents and other payments.

29.—The following section is hereby substituted for section 93 of the Income Tax Act, 1967 :

“93.—(1) This section applies to the following payments:

(a) any rent payable in respect of any premises or easements, where the premises or easements are used, occupied or enjoyed in connection with any of the concerns the profits or gains arising out of which are chargeable to tax under Case 1 (b) of Schedule D by virtue of section 53, and

(b) any yearly interest, annuity or other annual payment reserved in respect of, or charged on or issuing out of any premises, not being a rent or a payment in respect of an easement,

being payments falling due on or after the 6th day of April, 1969.

In paragraph (a) the reference to rent shall be deemed to include a reference to a toll, duty, royalty or annual or periodical payment in the nature of rent, whether payable in money or money's worth or otherwise.

(2) Any payment to which this section applies shall—

(a) so far as it does not fall within any other Case of Schedule D, be charged with tax under Case IV of that Schedule, and

(b) be treated, for the purposes of paragraph (m) of section 61 and of sections 433 and 434 as if it were a royalty paid in respect of the user of a patent:

Provided that where such a rent as is mentioned in subsection (1) (a) is rendered in produce of the concern, this subsection shall have effect as if paragraph (b) were omitted; and the value of the produce so rendered shall be taken to be the amount of profits or gains arising therefrom.

(3) Section 8 (2) shall have effect as if ‘other annual payment’ in both places where occurring in that subsection, included a reference to any payment to which this section applies not being a payment of rent, interest or annuity.”.