Part 10Assured tenancy allowances
Chapter 8Supplementary provisions
529Giving effect to allowances and charges
1
If a person who is entitled or liable to an allowance or charge for a chargeable period was carrying on a Schedule A business at any time in that period, the allowance or charge is to be given effect in calculating the profits of that business, by treating—
a
the allowance as an expense of that business, and
b
the charge as a receipt of that business.
2
If a person who is entitled or liable to an allowance or charge for a chargeable period was not carrying on a Schedule A business at any time in that period, the allowance or charge is to be given effect by treating him as if he had been carrying on such a business in that period and as if—
a
the allowance were an expense of that business, and
b
the charge were a receipt of that business.
530Apportionment of sums partly referable to non-qualifying assets
1
If the sum paid for the sale of the relevant interest in a building is attributable—
a
partly to assets representing expenditure for which an allowance can be made under this Part, and
b
partly to assets representing other expenditure,
only so much of the sum paid as on a just and reasonable apportionment is attributable to the assets referred to in paragraph (a) is to be taken into account for the purposes of this Part.
2
Subsection (1) applies to other proceeds from a balancing event in respect of a building as it applies to a sum given for the sale of the relevant interest in the building.
3
Subsection (1) does not affect any other provision of this Part requiring an apportionment of the proceeds of a balancing event.
531Meaning of “dwelling-house”, “lease” etc.
1
In this Part “dwelling-house” has the same meaning as in the Rent Act 1977 (c. 42).
2
In this Part “lease” includes—
a
an agreement for a lease if the term to be covered by the lease has begun, and
b
any tenancy,
but does not include a mortgage (and “lessee”, “lessor” and “leasehold interest” are to be read accordingly).
3
In the application of this Part to Scotland—
a
“leasehold interest” means the interest of a tenant in property subject to a lease, and
b
any reference to an interest which is reversionary on a leasehold interest or on a lease is to be read as a reference to the interest of the landlord in the property subject to the leasehold interest or lease.