Corporation Tax Act 2009 section 62

Tenants under taxed leases: introduction

Section 62 introduces the rules that allow tenants under taxed leases to claim trading expense deductions where they use the leased land for the purposes of their trade.

• Where land used in a trade is subject to a taxed lease, the tenant may be treated as incurring deductible trading expenses in respect of the premium element, under sections 63 to 67
• Any such deduction is subject to the general restrictions on allowable deductions set out in Chapter 4 of Part 3 of the Act
• Key terms such as "taxed lease", "taxed receipt", "receipt period" and "unreduced amount" take their meanings from the lease premium rules in Chapter 4 of Part 4
• In Scotland, references to a lease granted out of a taxed lease are read as references to a sublease of the land subject to that taxed lease