Section 97(2) TCA 1997
97.—(1) Subject to this Chapter, the amount of the profits or gains arising in any year shall for the purposes of Case V of Schedule D be computed as follows:
(
a) the amount of any rent shall be taken to be the gross amount of that rent before any deduction for income tax;
(
b) the amount of the profits or gains arising in any year shall be the aggregate of the surpluses computed in accordance with
paragraph (c), reduced by the aggregate of the deficiencies as so computed;
(
c) the amount of the surplus or deficiency in respect of each rent or in respect of the total receipts from easements shall be computed by making the deductions authorised by
subsection (2) from the rent or total receipts from easements, as the case may be, to which the person chargeable becomes entitled in any year.
(2) The deductions authorised by this subsection shall be deductions by reference to any or all of the following matters—
(
a) the amount of any rent payable by the person chargeable in respect of the premises or in respect of a part of the premises;
(
b) any sums borne by the person chargeable—
(i) in the case of a rent under a lease, in accordance with the conditions of the lease, and
(ii) in any other case, relating to and constituting an expense of the transaction or transactions under which the rents or receipts were received,
in respect of any rate levied by a local authority, whether such sums are by law chargeable on such person or on some other person;
(
c) the cost to the person chargeable of any services rendered or goods provided by such person, otherwise than as maintenance or repairs, being services or goods which—
(i) in the case of a rent under a lease, such person is legally bound under the lease to render or provide but in respect of which such person receives no separate consideration, and
(ii) in any other case, relate to and constitute an expense of the transaction or transactions under which the rents or receipts were received, not being an expense of a capital nature;
(
d) the cost of maintenance, repairs, insurance and management of the premises borne by the person chargeable and relating to and constituting an expense of the transaction or transactions under which the rents or receipts were received, not being an expense of a capital nature;
(
e) interest on borrowed money employed in the purchase, improvement or repair of the premises.