Corporation Tax Act 2009 section 41 (Schedule 2 paragraph 41)

Lease premiums: taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA

Section 41 ensures that rent deductions claimed under older ICTA rules for lease premiums are properly carried forward and recognised under the current Corporation Tax Act 2009 framework.

• Where a tenant was treated as paying notional rent under the old ICTA rules (before 2005-06 for income tax or before 1 April 2009 for corporation tax), those earlier deductions are preserved under the new legislation.
• For trading profits, deductions previously allowed under ICTA section 87(2) are treated as if they were deductions under CTA 2009 section 63 when applying the current rules on unused amounts and limits on reductions.
• For property business profits, deductions previously allowed under ICTA section 37(4) are treated as if they were deductions under ITTOIA 2005 section 292 when applying the equivalent current rules.
• This transitional provision applies only where the amount originally charged under ICTA corresponds to a "taxed receipt" under the ITTOIA 2005 lease premium rules, ensuring consistency between the old and new regimes.