Finance Act 1995

12 (1) Section 37 of that Act (deductions from premiums and rents received), except where it is applied for the purposes of corporation tax, shall have effect with the following modifications.

(2) Subsection (1) shall have effect as if for paragraphs (a) and (b) there were substituted the following paragraphs—

“(a) any amount falls to be treated as a receipt of a Schedule A business by virtue of section 34 or 35; or

(b) any amount would fall to be so treated but for the operation of subsection (2) or (3) below;”.

(3) Subsection (2) shall have effect as if—

(a) in paragraph (b), for the words from “be” to “any amount” there were substituted “be treated by virtue of section 34 or 35 as receiving any amount as income in the course of carrying on a Schedule A business”; and

(b) for “on which he is so chargeable” there were substituted “which he shall be treated as having so received”.

(4) Subsection (3) shall have effect as if—

(a) for “chargeable under section 34 or 35” there were substituted “treated by virtue of section 34 or 35 as having received any amount as income in the course of carrying on a Schedule A business and falls to be so treated”; and

(b) for “on which he is so chargeable” there were substituted “which he shall be treated as having so received”.

(5) Subsection (4) shall have effect as if for the words from “purposes” to “other premises” there were substituted “purpose, in computing the profits or gains, or losses, of a Schedule A business, of making deductions in respect of the disbursements and expenses of that business”.