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Deduction by reference to premium, etc., paid in the computation of profits for purposes of Schedule D, Cases I & II.
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91.—(1) Where, in relation to any premises, an amount (hereafter in this section referred to as the amount chargeable)—
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(a) has become chargeable to tax under subsection (1), (2), (3), (4) or (5) of section 83 or under section 84 or 85, or
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(b) would have become so chargeable but for section 83 (6) or but for section 92 (2) or but for any exemption from tax,
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and, during any part of the relevant period, the premises are wholly or partly occupied by the person for the time being entitled to the lease, estate or interest as respects which the amount chargeable arose for the purposes of a trade or profession carried on by him, that person shall be treated, for the purpose of computing the profits or gains of the trade or profession for assessment under Case I or Case II of Schedule D, as paying in respect of the premises rent for any part of the relevant period during which the premises are occupied by him as aforesaid (in addition to any rent actually paid) an amount which bears to the amount chargeable the same proportion as that part of the relevant period bears to the whole, and such rent shall be taken as accruing from day to day.
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(2) In this section “the relevant period” means—
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(a) where the amount chargeable arose under section 83, the period treated, in computing that amount, as being the duration of the lease;
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(b) where the amount chargeable arose under section 84, the period treated, in computing that amount, as being the duration of the lease remaining at the date of the assignment;
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(c) where the amount chargeable arose under section 85, the period beginning with the sale and ending on the date fixed under the terms of the sale as the date of the reconveyance or grant, or, if that date is not fixed, ending with the earliest date at which the reconveyance or grant could take place in accordance with the terms of the sale.
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(3) Where the amount chargeable arose under section 83 (2) by reason of an obligation which included the incurring of expenditure in respect of which any allowance has fallen or will fall to be made under Chapter II of Part XV or under Part XVI, this section shall apply as if the obligation had not included the incurring of that expenditure and the amount chargeable had been calculated accordingly.
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(4) Where the amount chargeable arose under section 85 and the reconveyance or grant in question takes place at a price different from that taken in calculating that amount or on a date different from that taken in determining the relevant period, the foregoing provisions of this section shall be deemed to have had effect (for all relevant years of assessment) as they would have had effect if the actual price or date had been so taken and such adjustments of liability to tax shall be made, by means of additional assessment or otherwise, as may be necessary.
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