Income Tax (Trading and Other Income) Act 2005 section 291

Deductions for expenses under section 292

Section 291 explains how a tenant who holds a taxed lease can claim expense deductions when calculating the profits of their property business, and sets out the conditions and limits that apply to those deductions.

• A tenant under a taxed lease may claim a deduction for each qualifying day on which all or part of the leased premises is either occupied for the purposes of their property business or is sublet to another party.
• The deemed expenses that the tenant can deduct under section 292 are still subject to the general rules restricting allowable deductions for property businesses, as set out in Chapter 4 of Part 2 of the Act.
• The amount of any deduction claimed by reference to a taxed receipt may be reduced so that the total relief given does not exceed the overall cap imposed by section 295.
• The key definitions of "taxed lease" and "taxed receipt" are found in section 287(4) of the Act.

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