Valid from 21/07/2008
(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).]
Textual Amendments
F1Ss. 785B-785E inserted (with effect in accordance with Sch. 20 para. 1(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 1(1) (with transitional modifications in Sch. 20 para. 1(3))