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”).