Income Tax (Trading and Other Income) Act 2005 section 69

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

Section 69 is a transitional provision that ensures rent deductions claimed under the old ICTA rules (before 6 April 2005) for lease premiums are properly carried forward and recognised under the new ITTOIA 2005 framework.

• Where a trader was treated as paying notional rent under section 87(2) of ICTA for periods before 2005-06, those deductions are carried forward and counted as deductions under section 61 of ITTOIA 2005 for the purposes of the lease premium rules in sections 290 and 295
• Where a property business landlord was treated as paying notional rent under section 37(4) of ICTA for periods before 2005-06, those deductions are carried forward and counted as deductions under section 292 of ITTOIA 2005 for the same purposes
• The link between old and new rules is made through paragraph 67, which converts the old ICTA chargeable amount into the "taxed receipt" used in Chapter 4 of Part 3 of ITTOIA 2005
• This ensures that the caps in sections 290 and 295 on lease premium deductions and reductions properly take into account any relief already given under the former ICTA provisions