BIM46251 - Specific deductions: premiums: introduction
ICTA88/S87
The following instructions deal with the deduction allowable under ICTA88/S87 where:
- a premium chargeable on the recipient under ICTA88/S34 or ICTA88/S35 (see PIM1200 onwards),
- has been paid by a trader etc or his predecessor in title,
- in respect of premises occupied or used for the purpose of his trade, profession or vocation.
Cases within ICTA88/S36 are excluded from relief under
ICTA88/S87.
For the purpose of such a deduction (referred to in this
guidance as a
trading deduction), relief is due on:
- so much of the premium as is chargeable on the recipient, or
- would be so chargeable but for any relief, exemption or claim by the landlord under ICTA88/S34 (8).
For an explanation of how relief under ICTA88/S87 is to be given
see
BIM46255.
In general, the same conditions apply as in the case of the
relief allowable to an intermediate landlord under Schedule A (see
PIM2300 onwards).
As regards artificial leasing transactions, see
BIM46260,
BIM61300 onwards and PIM1206
onwards.
