Part 4Property income
Chapter 4Profits of property businesses: lease premiums etc
Deductions in relation to certain receipts
231Deductions for expenses under section 232
1
Section 232 (tenants under taxed leases treated as incurring expenses) applies in calculating the profits of a property business carried on by the tenant under a taxed lease for the purpose of making deductions for the expenses of the property business.
2
A deduction is allowed for an expense under section 232 for a qualifying day on which the whole or part of the premises subject to the taxed lease is—
a
occupied by the tenant for the purpose of carrying on the property business, or
b
sublet.
3
But any deduction for an expense under section 232 is subject to the application of any provision of Chapter 4 of Part 3 (as applied to property businesses by section 210).
4
The amount of the deduction for an expense under section 232 for a qualifying day by reference to a taxed receipt may be reduced in order to comply with section 235 (limit on reductions and deductions).
5
For the meaning of expressions used in this section, see in particular—
section 227(4) (“taxed lease”), and
Section 227(4) (“taxed receipt”).