Explanatory Notes

Corporation Tax Act 2010

2010 CHAPTER 4

3 March 2010

Introduction

Part 21: Leasing arrangements: finance leases and loans

Chapter 2: Finance leases with return in capital form
Sections 911 to 914: Relief for bad debts by reduction of cumulative rental excesses
Overview

2700.These sections are concerned with bad debts. Broadly, the aim is to ensure that any bad debts are sensibly taken into account in calculating taxable profits and accountancy rental excesses and normal rental excesses. If the lease runs its course, the net rents taxed should equal the net rents payable after allowing for any bad debts.