Finance Act, 1991

Amendment of section 45 (double rent allowance as a deduction in computing trading income) of Finance Act, 1986.

21.—(1) Section 45 (as amended by section 32 of the Finance Act, 1990 ) of the Finance Act, 1986 , is hereby amended—

(a) in subsection (1)—

(i) by the substitution, in subparagraph (II) of paragraph (i) of the definition of “qualifying premises”, of “falls, or will by virtue of section 23 of the Finance Act, 1991 fall” for “falls”,

(ii) by the deletion of the definition of “relevant rental period”, and

(iii) by the addition of the following paragraph after paragraph (b):

“(c) For the purposes of this section, so much of a period, being a period when rent is payable by a person in relation to a qualifying premises under a qualifying lease, shall be a relevant rental period as does not exceed—

(i) 10 years, or

(ii) the period by which 10 years exceeds—

(I) any preceding period, or

(II) if there is more than one preceding period, the aggregate of preceding periods,

for which rent was payable by that person or any person connected with that person in relation to that premises under a qualifying lease.”,


(b) in subsection (2), by the substitution of “for a relevant rental period” for “in the relevant rental period” and the said subsection (2), other than the proviso, as so amended, is set out in the Table to this section.

(2) This section shall take effect as respects rent payable in relation to any qualifying premises under a qualifying lease entered into on or after the 18th day of April, 1991.


(2) Where, in the computation of the amount of the profits or gains of a trade or profession, a person is, apart from this section, entitled to any deduction (hereafter in this subsection referred to as “the first-mentioned deduction”) on account of rent in respect of a qualifying premises occupied by him for the purposes of that trade or profession which is payable by him for a relevant rental period in relation to that qualifying premises under a qualifying lease, he shall be entitled in that computation to a further deduction equal to the amount of the first-mentioned deduction.