Part 2Trading income
Chapter 5Trade profits: rules allowing deductions
Tenants under taxed leases
60Tenants under taxed leases: introduction
1
Sections 61 to 67 apply if land used in connection with a trade is subject to a taxed lease.
2
Section 61 (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 61 is subject to the application of any provision of Chapter 4 of this Part.
4
In this section and sections 61 to 67 the following expressions have the same meaning as in Chapter 4 of Part 3 (profits of property businesses: lease premiums etc.)—
“receipt period” (see section 288(6)),
“taxed lease” (see section 287(4)),
“taxed receipt” (see section 287(4)), and
“unreduced amount” (see section 290(2)).
5
Section 290(3) and (4) (unreduced amount of taxed receipt under section 277 as a result of section 278) applies for the purposes of sections 61 to 65.
6
In sections 64 to 67 references to a reduction under section 288 F1below or section 228 of CTA 2009 by reference to a taxed receipt have the same meaning as in Chapter 4 of Part 3 (see section 290(6)).
7
In the application of sections 64 to 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.