Section 360Z | Giving effect to allowances and charges: trades ^F1

(1)An allowance or charge to which a person is entitled or liable under this Part is to be given effect in calculating the profits of that person's trade, by treating—^F1

(a)the allowance as an expense of the trade, and^F1

(b)the charge as a receipt of the trade.^F1

(2)In the case of a person who—^F1

(a)is entitled to an allowance or liable to a charge in respect of a qualifying building, and^F1

(b)occupies that building in the course of a profession or vocation,^F1

the references in subsection (1) to a trade are to be read as references to the profession or vocation.

(3)Subsection (1) is subject to—^F1F2

(a)section 6E (giving effect to allowances and charges: NI rate activity cases), and^F1F2

(b)the following provisions of this Chapter.^F1F2

(4)If a company or partnership is as a result of section 6D (NI rate activity treated as separate trade) treated for the purposes of this Act as carrying on two separate trades, the question of whether an allowance or charge relates to the NI rate activity or the main rate activity is to be determined by reference to the purposes for which the qualifying building is used.^F1F3

(5)If the qualifying building is used both for the purposes of the NI rate activity and for the purposes of the main rate activity, allowances and charges are to be apportioned on a just and reasonable basis between the trade consisting of the NI rate activity and the trade consisting of the main rate activity, according to the proportion of use for the purposes of the NI rate activity.^F1F3

(6)In this section “main rate activity” means an activity other than an NI rate activity.^F1F3