Part 4U.K.Property income
Chapter 4U.K.Profits of property businesses: lease premiums etc
Modifications etc. (not altering text)
C1Pt. 4 Ch. 4 applied by 2010 c. 8, s. 436(8) (as inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1 (with Sch. 5 paras. 27, 32-34))
Deductions in relation to certain receiptsU.K.
232Tenants under taxed leases treated as incurring expensesU.K.
(1)The tenant under a taxed lease is treated as incurring an expense of a revenue nature in respect of the premises subject to the taxed lease for each qualifying day.
(2)If there is more than one taxed receipt, this section applies separately in relation to each of them.
(3)A day is a “qualifying day”, in relation to a taxed receipt, if it falls within the receipt period of the taxed receipt.
(4)The amount of the expense for the qualifying day by reference to the taxed receipt is given by the formula—
where—
A is the unreduced amount of the taxed receipt, and
TRP is the number of days in the receipt period of the taxed receipt.
[F1(4A)No expense is to be determined under this section by reference to the taxed receipt if subsection (4B) or (4C) applies.
(4B)This subsection applies if there would have been no taxed receipt but for the application of Rule 1 in section 243 in determining the effective duration of the lease.
(4C)This subsection applies if there would have been no taxed receipt but for the application of Rule 1 in section 303 of ITTOIA 2005 in determining the effective duration of the lease for the purposes of Chapter 4 of Part 3 of that Act.]
(5)This section is subject to sections 233 and 234 (restrictions on expenses where the additional calculation rule is relevant).
(6)For the meaning of expressions used in this section, see in particular—
section 228(6) (“receipt period”), and
section 230(2) to (4) (“unreduced amount”).
Textual Amendments
F1S. 232(4A)-(4C) inserted (with effect in accordance with Sch. 28 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 28 para. 7