Finance Act 2005 (c. 7)

SCHEDULES

Yn ddilys o 07/04/2005

SCHEDULE 4 U.K. Accounting practice and related matters

Part 1 U.K. Bad debts and related matters

FA 1997 U.K.

18 (1) Schedule 12 to FA 1997 (leasing arrangements: finance leases and loans) is amended as follows. U.K.

(2) In paragraph 9(7) (relief for bad debts etc: cumulative accountancy rental excess), for the definition of “bad debt deduction” substitute—

““bad debt deduction”, in relation to a period of account, means the aggregate of any deductions falling to be made for accounting purposes for that period by way of impairment loss in respect of rents from the lease of the asset;”.

(3) In paragraph 10(7) (relief for bad debts etc: cumulative normal rental excess), for the definition of “bad debt deduction” substitute—

““bad debt deduction”, in relation to a period of account, means the aggregate of any deductions falling to be made for accounting purposes for that period by way of impairment loss in respect of rents from the lease of the asset;”.