Published: 10 June, 2013
Pages: 25

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Introduction

A lease inducement payment (LIP) is a (generally lump-sum) cash payment by a landlord to a tenant, or prospective tenant, as an inducement to enter into a lease. A lease surrender payment (LSP) is a payment typically made by a tenant to the landlord, but in some cases landlord to tenant, in consideration for terminating a lease prematurely.

If enacted, proposed legislative amendments will radically alter the income tax treatment of LIPs and LSPs, as well as other, similar arrangements concerning analogous land rights, with effect from 1 April 2013.

Course outline

• Lease Inducement, Surrender and Other Land-Related Payments
  • Orthodox Income Tax Treatment of Lease Inducement and Surrender Payments
  • Inland Revenue Review
  • New Income Tax Treatment: Lease Inducement (And Similar) Payments
  • New Income Tax Treatment: Lease Surrender (And Similar) Payments
  • Broader Proposals for The Taxation of Land Right Payments
• GST Land Zero-Rating Rule Update
  • The Definition of Land
  • Information Requirements
  • Reverse Charge
  • Timing of Amendments Proposed by Officials
• GST In Valuations
  • Case Law on GST In Valuations
• Mixed-Use Assets Expenditure
  • Outline of The Proposed Changes