PART XVII TAX AVOIDANCE
CHAPTER VI MISCELLANEOUS
Other provisions
F1785ESection 785B: expectation that relevant capital payment will not be paid
1
This section applies for corporation tax purposes if—
a
section 785B 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).