Corporation Tax Act 2009 section 65

Tenants dealing with land as property employed for purposes of trade

Section 65 extends the deemed expense relief available under section 63 to tenants who do not physically occupy land held under a taxed lease but who use that land as property employed for the purposes of their trade.

• A tenant who does not occupy the land but deals with it as property used for trade purposes is treated as if it occupied the land for the purposes of the section 63 deemed expense relief
• An example would be a company that holds a lease on premises and sub-lets them to a person who sells only goods supplied by that company
• Relief cannot be claimed under this section for any qualifying day to the extent that a deduction for the same day has already been given in calculating the profits of the tenant's property business under section 232
• The relief is subject to further restrictions under sections 66 and 67, which apply where the additional calculation rule is relevant