18(1)Section 37 of the Taxes Act 1988 (deductions from premiums and rents received) is amended as follows.U.K.
(2)In subsection (1) for paragraphs (a) and (b) substitute—
“(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)In subsection (2)—
(a)in paragraph (b), for the words from “be" to “any amount" substitute “ 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)in the closing words, for “on which he is so chargeable" substitute “ which he shall be treated as having so received ”.
(4)In subsection (3)—
(a)for “chargeable under section 34 or 35" substitute “ 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" substitute “ which he shall be treated as having so received ”.
(5)In subsection (4) for the words from “purposes" to “other premises" substitute “ purpose, in computing the profits of a Schedule A business, of making deductions in respect of the disbursements and expenses of that business ”.