Pt. 12A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 4 para. 2 (with Sch. 9 paras. 1-9, 22)

http://www.legislation.gov.uk/ukpga/2007/3/section/681AFIncome Tax Act 2007An Act to restate, with minor changes, certain enactments relating to income tax; and for connected purposes.texttext/xmlenStatute Law Database2026-04-23Expert Participation2026-04-06Income Tax Act 2007s. 6B(1A)Finance Act 2026Sch. 2 para. 2s. 8(2)-(4)Income Tax Act 2007s. 788(7)Legal Services Act 2007Sch. 21 para. 161(b)s. 29192193s. 211(2)art. 2(h)Part 12ASale and lease-back etcChapter 1Payments connected with transferred landCertain deductions from earnings: restriction and carrying forward of relief
681AFCarrying forward parts of payments(1)

This section applies if—

(a)

section 681AE has effect, and

(b)

conditions A and B are met.

(2)

Condition A is that under section 681AE part of a payment which would otherwise be allowed as a relevant deduction from earnings is not allowed.

(3)

Condition B is that one or more later payments are made, by the transferor or a person associated with the transferor, under—

(a)

the lease (if section 681AE has effect because of section 681AA(2)), or

(b)

the rentcharge or other transaction mentioned in section 681AB(2)(b) (if section 681AE has effect because of section 681AB(2)).

(4)

The part of the payment mentioned in subsection (2) may be carried forward and treated for the purposes of a relevant deduction from earnings as if it were made—

(a)

when the next of the later payments is made, and

(b)

for the period for which that later payment is made.

(5)

So far as a part of a payment carried forward under this section is not allowed as a relevant deduction from earnings, it may be carried forward again under this section.