Taxes Consolidation Act 1997 section 104

Taxation of certain rents and other payments

Section 104 deals with the taxation of rents, tolls, royalties, and similar payments connected with mining, quarrying, and other specified concerns, requiring such payments to be taxed under Case IV of Schedule D with income tax deducted at source.

• Rents (including tolls, duties, royalties, and periodical payments in the nature of rent) for premises or easements used in connection with Case I(b) concerns — such as quarries, mines, docks, canals, and railways — are taxable under Case IV of Schedule D.
• Yearly interest, annuities, and other annual payments reserved on or charged against premises (other than rent or easement payments) are also caught by this provision.
• These payments are treated as if they were patent royalties, meaning the payer must deduct income tax at source under the rules in sections 237 and 238, and the payment cannot be deducted as a normal trading expense under section 81(2)(m) but is instead allowed as a "charge on income".
• Where rent is paid in the form of produce from the concern rather than in cash, the produce is valued and taxed under Case IV, but the requirement to deduct tax at source does not apply.