Corporation Tax Act 2009 section 63

Tenants occupying land for purposes of trade treated as incurring expenses

Section 63 allows a tenant who occupies land under a lease on which the landlord has been taxed on a premium (a "taxed lease") to claim a deductible revenue expense for each day the land is used for trade purposes.

• A tenant under a taxed lease is treated as incurring a revenue expense for each qualifying day — a day falling within the receipt period on which the tenant occupies the land (or part of it) for trade purposes.
• If the tenant occupies all of the land for trade purposes, the daily expense is calculated as A ÷ TRP, where A is the unreduced amount of the taxed receipt and TRP is the number of days in the receipt period.
• If the tenant occupies only part of the land for trade purposes, the daily expense is F × A ÷ TRP, where F is the fraction of the land so occupied, calculated on a just and reasonable basis.
• No expense arises under this section if section 232(4B) or (4C) applies, and the deduction may also be limited where the tenant is entitled to a mineral extraction allowance under section 64.