Corporation Tax Act 2010 section 843

Exclusion of service charges etc.

Section 843 ensures that service charges and similar non-rent elements are stripped out when comparing actual lease payments against commercial rent limits under sections 838 and 839.

• When testing lease payments against commercial rent, any amounts relating to services, the use of non-land assets, or rates normally borne by the tenant must be excluded from the comparison.
• The amount excluded for these items must be just and reasonable — not simply whatever the lease document states.
• Any clauses in the lease that purport to fix the service charge or asset-use element of a payment are not conclusive; HMRC can look behind the contractual figures.
• A "relevant asset" for these purposes means any property or rights other than land or an interest in land — so fixtures, equipment and similar items are covered, but the land itself is not.