Section 42 — Corporation Tax Act 2009: Tied premises

Tied premises 42 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.