If land is sold and leased back the rental deductions will be limited to the commercial rent. Rent disallowed can be carried forward for relief in the future so long as amounts are payable under the lease. If a lease with less than 50 years is assigned and a new lease of 15 years or less is entered into then part of the premium received will be taxed as income. If assets other than land are sold and leased back similar rules will apply to those for sale and leaseback of land. Furthermore, if a deduction has been received in relation to a lease of an asset other than land and a capital sum is received by the lessee in respect of his interest in the lease, then the lower of the deduction obtained and the capital sum received will be charged as income.
