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
Section 913: Relief for bad debts: reduction of cumulative normal rental excess

2707.This section deals with the interaction of bad debt deductions and relief for cumulative normal rental excess under section 910. It is based on paragraph 10(1) to(4) and (7) of Schedule 12 to FA 1997.

2708.As with section 911, the rationale is that the relief should only represent an excess of normal rent over accountancy rental earnings which have effectively been brought into account for tax and that the relief should only be given against rents similarly brought into account.

2709.The structure of the detailed rules is identical with that in section 911.