Finance Act, 1963
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Deductions by reference to premiums paid in computation of profits for purposes of Part IX. |
93.—(1) Where any amount has become chargeable under subsection (1), (2) or (3) of section 86 of this Act, or would have become so chargeable but for subsection (4) of that section, in respect of a premium paid or deemed to have been paid under the terms subject to which a lease is granted, then, subject to the provisions of the following subsections of this section, the lessee, whether or not he is the original lessee, shall be deemed for the purposes of subsection (4) of section 84 of this Act to have paid by way of rent under the lease (in addition to any rent actually paid) in each year of assessment during which he is the lessee a payment which bears to the said amount (hereafter in this section referred to as the amount chargeable on the superior lease) the same proportion as the length of the period within that year during which he was the lessee bears to the length of the term of the lease. | |
(2) Where— | ||
(a) any amount has, or would have, become chargeable as mentioned in the immediately preceding subsection, and | ||
(b) the lessee would, apart from this subsection, have been chargeable to tax under the said section 86 on any amount in respect of premium paid, or deemed to have been paid, to him on a sub-lease of all or any part of the premises comprised in the lease, with or without other premises, | ||
the amount on which he is so chargeable shall, where no claim is made by him under subsection (4) of the said section 86, be the excess (if any) of the amount on which he would have been chargeable as aforesaid over the appropriate fraction of the amount chargeable on the superior lease, or, if the premises comprised in the lease and sub-lease respectively are not co-extensive, the appropriate fraction of that amount proportionately adjusted. | ||
(3) Where subsection (2) of this section has effect, subsection (1) shall apply for the year of assessment for which the lessee would have been chargeable as aforesaid and subsequent years only if the said appropriate fraction exceeds the amount on which the lessee would have been so chargeable, and shall then apply as if the amount chargeable on the superior lease had been equal to the excess: | ||
Provided that where part only of the premises comprised in the lease is comprised in the sub-lease, the said subsection (1) and this subsection shall be applied separately in relation to that part of the premises and to the remainder of those premises, but as if for any reference to the amount chargeable on the superior lease there were substituted a reference to that amount proportionately adjusted. | ||
(4) For the purposes of this section the appropriate fraction of the amount chargeable on the superior lease is the sum which bears to that amount the same proportion as the term of the sub-lease bears to the term of the lease. | ||
(5) Any proportionate adjustment referred to in this section shall be made by the inspector of taxes according to the best of his knowledge and judgment, and any such adjustment so made may be amended by the Special Commissioners, or by the Circuit Judge, on the hearing, or the re-hearing, of an appeal against an assessment made on the basis of the adjustment. |