Section 62 — Corporation Tax Act 2009: Tenants under taxed leases: introduction

Tenants under taxed leases: introduction 62 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.