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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Specific deductions: rent and rates: introduction

Expenses connected with premises or land occupied by a trader for the purposes of their trade will normally be allowed as a deduction unless the expenses relate to a capital matter (see BIM35000 onwards).

Normal principles apply such as the ‘wholly and exclusively’ rule (see BIM37000 onwards).

Examples of allowable expenses include:

  • rent paid by a trader to the landlord for premises they use for business purposes
  • business rates, Council Tax or ground rents
  • the cost of insurance, whether of the building or of the contents