Where rents received in respect of excess accommodation let, or
sublet, by a trader are excluded in computing the profits of a
trade (or profession), any deduction in respect of rent and other
outgoings, such as rates, insurance, repairs etc should be
restricted to the proportion attributable to the premises (or the
part of the premises) actually used for the purposes of the trade.
A contention that the measure of the deduction under this head
should be only the net amount of rent paid and other outgoings less
rent received should not be advanced.
Where rents received are numerous (for example, in the case
of concerns which make a practice of acquiring premises with
surplus accommodation), the adjustment of debits should extend to
such items as costs of management, advertising for tenants and so
on.
Where premises (or portions of premises) which are normally
let or sublet are vacant, any outgoings relating to the period
during which they are unlet should be dealt with in the same manner
as if the letting or subletting continued.
