BIM61300 - Leasing: avoidance: sale and leaseback of land: contents

ICTA88/S779 and ICTA88/S780 counter certain avoidance devices based on arrangements for the sale and leaseback of land or any interest in land.

  • ICTA88/S779 limits the rent payable to a commercial rent, and
  • ICTA88/S780 deals with the situation where a lessee incurs additional rental liability for a comparatively short period in return for the payment of a lump sum.

This chapter contains the following:

BIM61301Leasing: avoidance: sale and leaseback of land: ICTA88/S779
BIM61305Leasing: avoidance: sale and leaseback of land: definition of commercial rent
BIM61310Leasing: avoidance: sale and leaseback of land: extended meaning of transfer
BIM61315Leasing: avoidance: sale and leaseback of land: carry-forward of disallowed amounts
BIM61320Leasing: avoidance: sale and leaseback of land: rent in advance for more than year
BIM61325Leasing: avoidance: sale and leaseback of land: definitions
BIM61330Leasing: avoidance: sale and leaseback of land: liability of recipient not affected
BIM61335Leasing: avoidance: sale and leaseback of land: ICTA88/S780
BIM61340Leasing: avoidance: sale and leaseback of land: special arrangements
BIM61345Leasing: avoidance: sale and leaseback of land: assessment


Guidance on:

  • The commercial background and accountancy treatment of leasing is at BIM61000 onwards.
  • Anti-avoidance legislation in ICTA88/S781 - ICTA88/S785 (leased assets other than land) is at BIM61200 onwards.
  • Anti-avoidance legislation in FA97/SCH12 (back-loaded leases and ‘income-into-capital’ schemes) is in the Finance Leasing Manual at FLM27.01 onwards.
  • Income from property (Schedule A) is in the Property Income Manual (PIM).