Corporation Tax Act 2009

62Tenants under taxed leases: introductionU.K.
This section has no associated Explanatory Notes

(1)Sections 63 to 67 apply if land used in connection with a trade is subject to a taxed lease.

(2)Section 63 (tenants occupying land for purposes of trade treated as incurring expenses) applies in calculating the profits of a trade carried on by the tenant under the taxed lease for the purpose of making deductions for the expenses of the trade.

(3)But any deduction for an expense under section 63 is subject to the application of any provision of Chapter 4 of this Part.

(4)In this section and sections 63 to 67 the following expressions have the same meaning as in Chapter 4 of Part 4 (profits of property businesses: lease premiums etc)—

  • “receipt period” (see section 228(6)),

  • “taxed lease” (see section 227(4)),

  • “taxed receipt” (see section 227(4)), and

  • “unreduced amount” (see section 230(2)).

(5)Section 230(3) and (4) (unreduced amount of taxed receipt under section 217 as a result of section 218) applies for the purposes of sections 63 to 67.

(6)In the application of sections 66 and 67 to Scotland—

(a)references to a lease being granted out of a taxed lease are to the grant of a sublease of land subject to the taxed lease, and

(b)references to the lease so granted are to be read as references to the sublease.