Income Tax Act 2007 section 681BE

New lease treated as ending

Section 681BE introduces the rules that can treat a new lease as ending early for the purposes of the sale and lease-back provisions, and provides a tie-breaker where more than one rule applies.

• Sections 681BF to 681BH each set out circumstances in which a new lease is treated as coming to an end for the purposes of Chapter 2 (new lease of land after assignment or surrender).
• More than one of these provisions may apply to the same lease, potentially producing different deemed termination dates.
• Where multiple provisions do apply and give different dates, the lease is treated as ending on the earliest of those dates.
• This tie-breaker rule applies universally across all the relevant provisions, ensuring consistency regardless of which combination of sections is in play.