The rules in B6.301B–B6.302 explain how lease premiums and certain amounts effectively treated in the same way as premiums can be taxed as income. The payer of such an amount can qualify for relief as if the capital payment (or the proportion taxed as income) were a revenue expense.
Where the land is used in connection with a trade the relief is given under ITTOIA 2005, ss 60–67 or CTA 2009, ss 62–67 as a trading deduction, for which see B2.447. Where the tenant is occupying the land for the purpose of carrying on a property business or the tenant has sublet the land, the deduction is given as an expense of the property business1.
The availability of any relief is subject to the normal rules that can prevent relief (for example, the land not being used wholly or exclusively for the purposes of the property business)2. Relief is not available where there would have been no taxed receipt on the landlord but for the application of Rule 1 at B6.301B (which
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