Finance Act, 1963

Deduction by reference to premium paid in the computation of profits for purposes of Cases I and II of Schedule D.


(a) in any period (hereafter in this section referred to as the said period) a person carrying on a trade, profession or vocation is the lessee of premises wholly or partly occupied by him for the purposes thereof, and

(b) any amount has become chargeable to tax 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, to the lessor (whether the lessee concerned was the person carrying on the trade, profession or vocation or his predecessor in title),

the computation, for the purpose of assessment under Case I or Case II of Schedule D, of the profits or gains of the trade, profession or vocation for the said period shall be made as if the person by whom it is carried on had paid in respect of the premises an amount of rent (in addition to any rent actually paid) equal to the amount chargeable as aforesaid (or where the said person is lessee under the lease for a part only of the said period, a proportionate part of that amount) multiplied by the fraction of which the numerator is the number of days in the said period and the denominator is the number of days in the duration of the lease as determined for the purposes of the relevant subsection of the said section 86.