Part 19Sale and lease-back etc

Chapter 1Payments connected with transferred land

Insurance company expenses: restriction and carrying forward of relief

840Carrying forward parts of payments

1

This section applies if—

a

section 839 has effect, and

b

conditions A and B are met.

2

Condition A is that under section 839 part of a payment which would otherwise be F1taken into account as mentioned in section 835(2)(c) or 836(2)(c) is not taken into account.

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 839 has effect because of section 835(2)), or

b

the rentcharge or other transaction mentioned in section 836(2)(b) (if section 839 has effect because of section 836(2)).

4

The part of the payment mentioned in subsection (2) may be carried forward and treated for the purposes of F2the calculation at step 1 of section 76 of FA 2012 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 F3taken into account in the calculation at step 1 of section 76 of FA 2012, it may be carried forward again under this section.