C2Part 3Trading income
Chapter 2Income taxed as trade profits
Trading income and property income
C142Tied premises
1
This section applies if —
a
in the course of carrying on a trade a company (“the trader”) supplies, or is concerned in the supply of, goods sold or used on premises occupied by another person,
b
the trader has an estate or interest in the premises,
c
the estate or interest is dealt with as property employed for the purposes of the trade, and
d
receipts and expenses in connection with the premises would otherwise be brought into account in calculating the profits of a property business of the trader.
2
Both the receipts and the expenses are instead brought into account in calculating the profits of the trade.
3
Any apportionment of receipts or expenses that is necessary because—
a
the receipts or expenses do not relate only to the premises, or
b
the above conditions are met only in relation to part of the premises,
is to be made on a just and reasonable basis.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)