‘Income-into-capital’ schemes and back loaded leases: Definition of a Chapter 2 of Part 21 of CTA 2010 lease lease: Condition B: exclusion of rent
In considering whether a particular sum is a ‘major lump sum’ you should first exclude any element which is ‘rent’. That does not prevent the balance from being a major lump sum if it satisfies the other conditions.
‘Rent’ is not expressly defined in the Schedule but the definition of a lease (see BLM70410) contains closing words which state that ‘rent’ shall be construed ‘accordingly’, that is in accordance with what has gone before. Since the definition of a lease is widely drawn, the term ‘rent’ should also be interpreted widely - to include payments for the hire of an asset, however labelled.
Example: a ‘lease’ is defined in terms which include the hire of an intangible on which royalties may be payable; those royalties should be regarded as rent for the purpose of the second condition. But you should resist any suggestion that ‘rent’ may include a sum which is not a hire payment or which is capital on first principles.