Annex 1: Minor Changes in the Law Change 13: Trading and property income: lease premiums etc: restrictions on expenses under sections 63 and 232 in respect of taxed receipt: sections 66, 67, 233 and 234 Later chargeable amounts arise in relation to different parts of the premises covered by the head lease
Section 37(6) of ICTA provides for the application of section 37(4) and (5) of ICTA if the later chargeable amount is in respect of a lease of only part of the premises subject to the head lease.
Section 37(6) of ICTA does not deal with the possibility that:
	more than one lease of part of the premises is granted out of the head lease;
	later chargeable amounts in respect of each such lease are reduced under section 37(3) of ICTA by reference to ACSI; and
	there is an overlap in the receipt periods of those later chargeable amounts.
This possibility is dealt with in section 234(5). The same change was made for income tax in section 294 of ITTOIA (see Change 15(B) in ITTOIA).
Section 67 is based on that part of section 87(5) of ICTA that applies section 37(6) of ICTA. Section 67(4) includes a similar change to that in section 234. The same change was made for income tax in section 65 of ITTOIA (see Change 15(B) in ITTOIA).
Section 295 of ITTOIA (as amended by Schedule 1 to this Act) and section 235 place a cap on the total amount of relief that can be obtained by reference to a taxed receipt. So if, as a result of this change, the relief to which a company is entitled is increased or decreased, this may affect the amount of relief subsequently available to other persons under Chapter 4 of Part 3 of ITTOIA or under Chapter 4 of Part 4 of this Act.
This change is adverse to some taxpayers and favourable to others in principle and in practice. But the numbers affected and the amounts involved are likely to be small.