Part 13Tax avoidance

F1Chapter 6Avoidance involving leases of plant and machinery

Annotations:
Amendments (Textual)
F1

Pt. 13 Ch. 6 inserted (21.7.2008 with effect in accordance with Sch. 20 para. 2(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 2(1) (with Sch. 20 para. 2(3))

809ZDSection 809ZA: expectation that relevant capital payment will not be paid

1

This section applies for income tax purposes if—

a

section 809ZA applies by virtue of subsection (1)(a) of that section, and

b

at any time, the lessor reasonably expects that the relevant capital payment will not be paid (or will not be paid in full).

2

For the purposes of calculating the profits of the lessor, a deduction is allowed for the period of account which includes that time.

3

The amount of the deduction is equal to the amount reasonably expected not to be paid.

4

No other deduction is allowed in respect of the matters mentioned in subsection (1).