Commentary on Sections Overview Overview Section 67: Restrictions on section 61 expenses: corporation tax receipts
278.This section is new. It ensures that any relief given for corporation tax purposes under section 37(2) or (3) of ICTA for an accounting period ending after 5 April 2005 by reference to:
	a receipt brought into account under Chapter 4 of Part 3 of this Act where the landlord is liable to income tax; or
	a receipt brought into account under section 34 or 35 of ICTA where the landlord is liable to corporation tax,
is taken into account in applying section 61 in the same way as any relief under section 288.
279.Subsections (1), (2) and (3) refer to a reduction under section 37(2) or (3) of ICTA by reference to “the amount chargeable on the superior interest”.
280.Section 37(1) of ICTA defines “the amount chargeable on the superior interest” as an amount treated as a receipt of a Schedule A business under section 34 or 35 of ICTA, or which would be so treated other than for relief under section 37(2) or (3) of ICTA, The “superior interest” is the interest in the property held by the immediate landlord.
281.Paragraph 20 of Schedule 1 to this Act amends section 37(1) of ICTA by extending the definition of “the amount chargeable on the superior interest” to include any amount treated as a receipt of a property business under sections 277 to 282 of this Act, or which would be treated as such a receipt other than for relief under the additional calculation rule in section 288.
282.So in this section “the amount chargeable on the superior interest” is an amount:
	treated as a receipt under section 34 or 35 of ICTA for any tax year; or
	treated as a receipt under Chapter 4 of Part 3 of this Act for an accounting period ending after 5 April 2005 as a result of the amendments to section 37(1) of ICTA made under paragraph 20 of Schedule 1 to this Act.