CA45930 | Business Premises Renovation Allowance: How allowances and charges are made

CAA01/Ss 360Z and 360Z1

If the person entitled to an allowance or liable to a charge carries on a trade oroccupies the building for a profession or vocation treat the allowance as an expense andthe charge as a receipt of the business.

If the person entitled to an allowance or liable to a charge carries on a propertybusiness treat the allowance as an expense and the charge as a receipt of the business.

If the person entitled to an allowance or liable to a charge does not carry on a trade,profession or vocation and does not have a property business

• treat the person as carrying on a property business (a virtual property business) and

• treat the allowance as an expense and the charge as a receipt of that virtual property business.