When a trader i.e. Leasee has paid a premium they are only allowed a proportion of this as a deductible expense based on the property income assessment of the landlord divided by the life of lease. So why can't you claim the full amount? I appreciate that the lessor will have only reflected the same amount with the rest is subject to cgi.
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Property income
Tax is full of rules based on legislation enacted by governments - those rules could have been different if made by different people - my advice is don't ask why but learn what is!!
As regards this question a trader can only deduct allowable trading expenditure against their trading profit - they cannot deduct what is capital expenditure. Capital expenditure is deducted in deriving a chargeable gain on any subsequent disposal of the lease!
The capital aspect of lease expenditure however is not in your syllabus.
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