Commentary on Sections Overview Overview Section 65: Restrictions on section 61 expenses: lease of part of premises
271.This section is based on section 87(5) of ICTA. It adapts section 61:
	where section 64 applies; and
	the sublease granted by the tenant does not extend to the whole of the premises subject to the taxed lease.
272.Subsection (4) deals with the case where the conditions for relief in sections 64 and 65 are met on the same qualifying day in respect of more than one lease. This corresponds to the treatment in section 294(4) of this Act of expenses under sections 292 and 293 where more than one taxed receipt falls to be reduced by reference to the same taxed receipt. See Change 15 in Annex 1.
273.Subsection (5) adapts the formulas in sections 61(4) and 64(6) by multiplying the unreduced amount of the taxed receipt in those formulas (“A”) by the fraction of the premises to which the sublease relates.
274.Section 87(3) of ICTA requires a “just apportionment” to be made where part only of the land to which section 87(2) of ICTA applies is occupied for the purposes of a trade. This section instead requires the fraction in subsection (5) to be calculated “on a just and reasonable basis”. See Change 14 in Annex 1.