Corporation Tax Act 2009 section 231

Deductions for expenses under section 232

Section 231 sets out the conditions under which a tenant holding a taxed lease can claim deductions in their property business for expenses they are treated as incurring in connection with an earlier taxed receipt, such as a lease premium.

• A tenant under a taxed lease may deduct deemed expenses (calculated under section 232) when computing the profits of their property business
• The deduction is available for each qualifying day on which all or part of the leased premises is either occupied by the tenant for the purposes of their property business or is sublet
• Any such deduction remains subject to the general rules restricting deductions that apply to property businesses under Chapter 4 of Part 3
• The amount of the deduction may be reduced so that the total relief given by reference to a particular taxed receipt does not exceed the overall cap imposed by section 235