Part 4Property income
Chapter 4Profits of property businesses: lease premiums etc
Limit on effect of additional calculation rule and deductions
235Limit on reductions and deductions
1
The total of—
a
the reductions under section 228 by reference to a taxed receipt, and
b
the deductions allowed in calculating the profits of a property business for expenses under section 232 (tenant under taxed lease which uses premises for purposes of property business treated as incurring expenses) by reference to the taxed receipt,
must not exceed the amount referred to in subsection (2).
2
The amount mentioned in subsection (1) is the difference between—
a
the unreduced amount of the taxed receipt, and
b
the total of the amounts mentioned in subsection (3).
3
Those amounts are—
a
the reductions under section 288 of ITTOIA 2005 (the additional calculation rule) by reference to the taxed receipt,
b
the deductions made in calculating the profits of a property business for expenses under section 292 of ITTOIA 2005 (tenant under taxed lease who uses premises for purposes of property business treated as incurring expenses) by reference to the taxed receipt, and
c
the deductions made in calculating the profits of a trade, profession or vocation for expenses under section 63 above or section 61 of ITTOIA 2005 (tenant under taxed lease who uses land in connection with trade treated as incurring expenses) by reference to the taxed receipt.