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Legislation
Corporation Tax Act 2009

Crossheading Tenants under taxed leases

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

Section 64 | 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 an accounting period 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 63 for a qualifying day falling within that or a later accounting period.

(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 63 for a qualifying day falling within that or a later accounting period 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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