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Legislation
Income Tax (Trading and Other Income) Act 2005

Crossheading Tenants under taxed leases

  • Section 60 Tenants under taxed leases: introduction
  • Section 61 Tenants occupying land for purposes of trade treated as incurring expenses
  • Section 62 Limit on deductions if tenant entitled to mineral extraction allowance
  • Section 63 Tenants dealing with land as property employed for purposes of trade
  • Section 64 Restrictions on section 61 expenses: lease premium receipts
  • Section 65 Restrictions on section 61 expenses: lease of part of premises
  • Section 66 Corporation tax receipts under ICTA treated as taxed receipts
  • Section 67 Restrictions on section 61 expenses: corporation tax receipts under ICTA
  1. Tenants under taxed leases
  2. Limit on deductions if tenant entitled to mineral extraction allowance

Section 62 | Limit on deductions if tenant entitled to mineral extraction allowance

From legislation.gov.uk

(1)This section applies if the tenant under the taxed lease has become entitled, in respect of expenditure on the acquisition of an interest in the land subject to the taxed lease, to an allowance for a tax year under Part 5 of CAA 2001 (mineral extraction allowances) in respect of expenditure falling within section 403 of that Act (qualifying expenditure on acquiring a mineral asset).

(2)If the allowance is in respect of the whole of the expenditure, no deduction is allowed for expenses under section 61 for a qualifying day falling within that or a later tax year.

(3)If the allowance is in respect of only part of the expenditure (“the allowable part”) the amount of the deduction for expenses under section 61 for a qualifying day falling within that or a later tax year is calculated by multiplying the amount that, apart from this section, would be the amount of the deduction for the qualifying day by—

Formula

WE-APWE

where—

WE is the whole of the expenditure, and

AP is the allowable part of the expenditure.

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