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EE 3: Ownership of goods subject to reservation of title
or “Delayed ownership for items bought on credit”
You could also call this:

“Renters are treated as owners of improvements they make to rented land”

When you rent a piece of land and build something on it or make it better, like putting up a shed or planting a garden, some special rules apply. Even though the person who owns the land also owns these improvements, the law treats you, the renter, as if you own them while you’re renting the land.

While you’re renting the land, you’re seen as the owner of anything you’ve built or improved. The person who owns the land isn’t seen as owning these things during this time. If the landowner sells the land to someone else while you’re still renting it, the new owner also isn’t seen as owning your improvements.

After you stop renting the land, the landowner still isn’t seen as owning your improvements, unless they spend money on them when your rental period ends. If the landowner sells the land after you’ve stopped renting it, the new owner also isn’t seen as owning your improvements.

These rules help to make sure that you get the benefits of the improvements you’ve made while you’re renting, even though you don’t actually own the land.

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Next up: EE 5: Ownership of lessee’s improvements: other person

or “Passing on ownership of improvements when a lease changes hands”
Next

Part E Timing and quantifying rules
Depreciation

EE 4Ownership of lessee’s improvements: lessee

  1. This section applies when—

  2. a lessee of land incurs expenditure during the period during which the land is leased to the lessee in erecting a fixture on the land or making an improvement to the land; and
    1. the lessor owns the fixture or improvement.

      1. The following apply to the ownership of the fixture or improvement:

      2. in the period during which the land is leased to the lessee,—
        1. the lessee is treated as owning the fixture or improvement; and
          1. the lessor is treated as not owning the fixture or improvement; and
            1. a person to whom the lessor disposes of the land during the period is treated as not owning the fixture or improvement; and
            2. after the period during which the land is leased to the lessee,—
              1. the lessor is treated as not owning the fixture or improvement, unless the lessor incurs a cost relating to it at the end of the period; and
                1. a person to whom the lessor disposes of the land during the period is treated as not owning the fixture or improvement.

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