http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/2002-07-24Finance Act 1997An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance.1997-03-19texttext/xmlenStatute Law Database2024-05-212002-07-24 SCHEDULESSCHEDULE 12 Leasing arrangements: finance leases and loansPart I Leasing arrangements where any of the return on investment is in capital form Purpose of this Part of this Schedule11This Part of this Schedule is concerned with arrangements—awhich involve the lease of an asset;bwhich are or have been entered into by companies or other persons;cwhich are of such a kind as, . . . falls . . . to be treated in accordance with generally accepted accounting practice as finance leases or loans; anddwhose effect is that some or all of the return on investment in respect of the finance lease or loan—iis or may be in the form of a sum which is not rent; andiiwould not, apart from this Schedule, be wholly brought into account for tax purposes as rent from the lease.2The principal purpose of this Part of this Schedule is, in the case of any such arrangements,—ato charge any person entitled to the lessor’s interest under the lease of the asset to tax from time to time on amounts of income determined by reference to those which fall for accounting purposes to be treated in accordance with generally accepted accounting practice as the income return, on and after 26th November 1996, on investment in respect of the finance lease or loan (taking into account the substance of the matter as a whole, including in particular the state of affairs as between connected persons, or within a group of companies, as reflected or falling to be reflected in accounts of any of those persons or in consolidated group accounts);bwhere the sum mentioned in sub-paragraph (1)(d) above falls due, to recover by reference to that sum the whole or any part of any reliefs, allowances or deductions which are or have been allowed or made in respect of capital expenditure incurred in respect of the leased asset. Application of this Part of this Schedule21This Part of this Schedule applies in any case where (whether before or after the passing of this Act)—aa lease of an asset is or has been granted; andbin the case of the lease, the conditions in paragraph 3 below are or have been satisfied at some time in a period of account of the current lessor.2Where the conditions in paragraph 3 below have been satisfied at some time in a period of account of the person who was at that time the lessor, they shall be taken to continue to be satisfied for the purposes of this Part of this Schedule unless and until—athe asset ceases to be leased under the lease; orbthe lessor’s interest under the lease is assigned to a person who is not connected with any of the persons described in sub-paragraph (3) below.3Those persons are—athe assignor;bany person who was the lessor at some time before the assignment; orcany person who at some time after the assignment becomes the lessor pursuant to arrangements made by a person who was the lessor, or was connected with the lessor, at some time before the assignment.4Nothing in sub-paragraph (2) above prevents this Part of this Schedule from again applying in the case of the lease if the conditions for its application are satisfied after the assignment. The conditions31The condition in this sub-paragraph is that at the relevant time the leasing arrangements are such as fall for accounting purposes to be treated in accordance with generally accepted accounting practice as a finance lease or a loan and—athe lessor, or a person connected with him, falls for accounting purposes to be treated in accordance with generally accepted accounting practice as the finance lessor in relation to the finance lease or loan, orbthe finance lease or loan falls for accounting purposes to be treated, in accordance with generally accepted accounting practice , as subsisting for the purposes of consolidated group accounts of a group of companies of which the lessor is a member.2The condition in this sub-paragraph is that, under the leasing arrangements, there is or may be payable to the lessor, or to a person connected with him, a sum (a “major lump sum”) which is not rent but is a sum such as falls for accounting purposes to be treated in accordance with generally accepted accounting practiceaas to part, as repayment of some or all of the investment in respect of a finance lease or loan; andbas to part, as a return on investment in respect of a finance lease or loan.3The condition in this sub-paragraph is that not all of that part of a major lump sum which falls within paragraph (b) of sub-paragraph (2) above would, apart from this Schedule, fall to be brought into account for tax purposes in chargeable periods of the lessor ending with the relevant chargeable period as the normal rent from the lease for periods of account of the lessor.4The condition in this sub-paragraph is that, as respects the lessor at the relevant time,—athe period of account of his in which the relevant time falls, orban earlier period of account of his during which he was the lessor,is a period of account for which the accountancy rental earnings in respect of the lease exceed the normal rent for the period.5The condition in this sub-paragraph is that at the relevant time—aarrangements falling within sub-paragraph (1) of paragraph 4 below exist; orbif the condition in paragraph (a) above is not satisfied, circumstances falling within sub-paragraph (2) of that paragraph exist.6In determining the normal rent for a period of account for the purpose of determining whether the condition in sub-paragraph (4) above is satisfied, rent which for the purposes of corporation tax under Schedule A falls to be brought into account as a person becomes entitled to it shall be treated—aas if it accrued evenly throughout the period to which, in accordance with the terms of the lease, each payment to which the person becomes entitled relates, andbas if he had become entitled to the rent as it so accrues,unless any such payment falls due more than 12 months after the time at which any of the rent to which that payment relates is so treated as accruing.7In determining the normal rent for a period of account for the purpose of determining whether the condition in sub-paragraph (4) above is satisfied, rent which falls to be brought into account for tax purposes as it falls due shall be treated—aas accruing evenly throughout the period to which, in accordance with the terms of the lease, each payment falling due relates, andbas falling due as it so accrues,unless any such payment falls due more than 12 months after the time at which any of the rent to which that payment relates is so treated as accruing.8In this paragraph—the relevant chargeable period”, in the case of any major lump sum, means—the chargeable period of the lessor which is related to his period of account in which that major lump sum is or may be payable in accordance with the leasing arrangements; orif there are two or more such chargeable periods, the latest of them;the relevant time” means the time as at which it falls to be determined for the purposes of sub-paragraph (1) or (2) of paragraph 2 above whether the conditions in this paragraph are or, as the case may be, were satisfied. The arrangements and circumstances in paragraph 3(5)41The arrangements mentioned in paragraph 3(5)(a) above are arrangements under which—athe lessee or a person connected with him may acquire, whether directly or indirectly, the leased asset, or an asset representing the leased asset, from the lessor or a person connected with the lessor; andbin connection with that acquisition, the lessor or a person connected with him may receive, whether directly or indirectly, a qualifying lump sum from the lessee or a person connected with the lessee.2The circumstances mentioned in paragraph 3(5)(b) above are circumstances which make it more likely—athat the events described in sub-paragraph (3) below will occur, thanbthat the event described in sub-paragraph (4) below will occur.3The events mentioned in sub-paragraph (2)(a) above are—athat the lessee or a person connected with him will acquire, whether directly or indirectly, the leased asset or an asset representing the leased asset from the lessor or a person connected with the lessor; andbthat, in connection with that acquisition, the lessor or a person connected with him will receive, whether directly or indirectly, a qualifying lump sum from the lessee or a person connected with the lessee.4The event mentioned in sub-paragraph (2)(b) above is that, before any such acquisition as is mentioned in sub-paragraph (3) above takes place, the leased asset or, as the case may be, the asset representing the leased asset, will have been acquired, in a sale on the open market, by a person who is not the lessor or the lessee and who is not connected with either of them.5In this paragraph, “qualifying lump sum” means any sum which is not rent but at least part of which would . . . fall for accounting purposes to be treated in accordance with generally accepted accounting practice as a return on investment in respect of a finance lease or loan. Current lessor to be taxed by reference to accountancy rental earnings51Where, in the case of any period of account of the current lessor,—athis Part of this Schedule applies in the case of the lease, andbthe accountancy rental earnings in respect of the lease for that period of account exceed the normal rent for that period,he shall be treated for tax purposes as if in that period of account he had been entitled to, and there had arisen to him, rent from the lease of an amount equal to those accountancy rental earnings (instead of the normal rent referred to in paragraph (b) above).2Where a person is treated under sub-paragraph (1) above as if he had in a period of account been entitled to, and there had arisen to him, any rent from a lease of an asset, the rent shall be treated for tax purposes—aas if it had accrued at an even rate throughout so much of the period of account as falls within the period for which the asset is leased; andbas if that person had become entitled to it as it accrued. Reduction of taxable rent by certain excesses61Subject to sub-paragraph (6)(b) below, if in the case of the lease—athe normal rent for a period of account of the current lessor throughout which the leasing arrangements are such as fall for accounting purposes to be treated in accordance with generally accepted accounting practice as a finance lease or loan, exceedsbthe accountancy rental earnings for the period,there is for the purposes of this paragraph a “normal rental excess” for that period of an amount equal to the excess.2In this paragraph the “cumulative normal rental excess” in the case of the lease and a period of account of the current lessor means so much of the aggregate of the normal rental excesses for previous periods of account of his as (after taking account of any increases under paragraph 10 below) has not been—aset off under this paragraph against the taxable rent for any such previous period; orbreduced under paragraph 10 below.3Subject to sub-paragraph (8)(b) below, if the taxable rent in the case of the lease for a period of account of the current lessor is, by virtue of paragraph 5 above, an amount equal to the accountancy rental earnings, there is for the purposes of this paragraph an “accountancy rental excess” for that period of an amount equal to the difference between—athe accountancy rental earnings for the period of account; andbthe normal rent for the period.4In this paragraph the “cumulative accountancy rental excess”, in the case of the lease and a period of account of the current lessor, means so much of the aggregate of the accountancy rental excesses for previous periods of account of his as (after taking account of any increases under paragraph 9 below) has not been—aset off under this paragraph against the taxable rent for any such previous period;breduced under paragraph 9 below; orcset off under paragraph 12 below against the consideration for a disposal.5If a period of account of the current lessor is one—afor which the normal rent exceeds the accountancy rental earnings, andbfor which there is any cumulative accountancy rental excess,sub-paragraph (6) below shall apply.6Where this sub-paragraph applies—athe taxable rent for the period of account shall be reduced (but not below the accountancy rental earnings) by setting against it the cumulative accountancy rental excess; andbthe normal rental excess for the period shall be the amount (if any) by which—ithe normal rent, reduced by an amount equal to the reduction under paragraph (a) above, exceedsiithe accountancy rental earnings,and if there is no such excess, there is no normal rental excess for the period.7If a period of account of the current lessor is one—afor which the taxable rent in the case of the lease is, by virtue of paragraph 5 above, an amount equal to the accountancy rental earnings, andbthere is any cumulative normal rental excess,sub-paragraph (8) below shall apply.8Where this sub-paragraph applies—athe taxable rent for the period of account shall be reduced (but not below the normal rent) by setting against it the cumulative normal rental excess, andbthe accountancy rental excess for the period shall be the amount (if any) by which—ithe accountancy rental earnings, reduced by an amount equal to the reduction under paragraph (a) above, exceedsiithe normal rent,and if there is no such excess, there is no accountancy rental excess for the period.9In this paragraph “the taxable rent”, in the case of a period of account of the current lessor, means the amount which would, apart from this paragraph and paragraph 8(6) below, be treated for tax purposes as rent from the lease—awhich arises to him, andbif rent arising to him from the lease is chargeable to corporation tax under Schedule A, to which he is entitled,in that period of account for the purpose of determining his liability to tax for the related chargeable period or periods. Assignments on which neither a gain nor a loss accrues71This paragraph applies in any case where—athe current lessor assigns the lessor’s interest under the lease; andbthe assignment is a disposal on which, by virtue of any of the enactments specified in section 35(3)(d) of the Taxation of Chargeable Gains Act 1992, neither a gain nor a loss accrues.2Where this paragraph applies, this Schedule shall have effect as if—aa period of account of the assignor ended, andba period of account of the assignee began,with the assignment.3Where this paragraph applies—aany unused cumulative accountancy rental excess, orbany unused cumulative normal rental excess,of the assignor shall become the cumulative accountancy rental excess or the cumulative normal rental excess (as the case may be) for the period of account of the assignee which begins with the assignment.4In sub-paragraph (3) above—unused cumulative accountancy rental excess”, in relation to the assignor, means the aggregate of—any cumulative accountancy rental excess, andany accountancy rental excess,for the period of account of his which ends with the assignment;unused cumulative normal rental excess”, in relation to the assignor, means the aggregate of—any cumulative normal rental excess, andany normal rental excess,for the period of account of his which ends with the assignment. Relief for bad debts <Abbreviation Expansion="Et cetera" xml:lang="la">etc</Abbreviation>: corporation tax under Schedule A81Section 41 of the Taxes Act 1988 (which gives a person relief from corporation tax under Schedule A for rent etc not paid, by treating him as if he had never been entitled to the rent) shall be disregarded in determining for the purposes of this Part of this Schedule the amount of—athe accountancy rental earnings in respect of the lease, orbthe normal rent from the lease,for any period of account.2Where for any period of account—aa person is treated under paragraph 5 above as if he had been entitled to receive an amount of rent, andbthe amount is in respect of rents on the profits or gains arising from which that person is chargeable to corporation tax under Schedule A,section 41 of the Taxes Act 1988 shall not have effect in relation to amounts in respect of rents from the lease of the asset for that or any subsequent period of account of his, or of any person to whom the lessor’s interest under the lease is assigned, until the lease terminates or is assigned in circumstances such that paragraph 7 above does not apply.3Where, by virtue of sub-paragraph (2) above, section 41 of the Taxes Act 1988 does not apply, sub-paragraph (4) below shall apply instead.4In computing the profits or gains on which a person is chargeable to corporation tax under Schedule A in a case falling within sub-paragraph (2) above, any sums falling within sub-paragraph (i), (ii) or (iii) of section 74(1)(j) of the Taxes Act 1988 in respect of amounts in respect of rents from the lease of the asset shall be deductible in a period of account as an expense to the extent that they would be deductible in that period of account if—aamounts in respect of rents from the lease of the asset fell to be taken into account as trading receipts in computing the profits of a trade carried on by the person;bthe asset were leased in the course of that trade; andcthe charge to corporation tax under Schedule A were in respect of such annual profits or gains as are described in that Schedule arising from a trade.5Any such expense as is mentioned in sub-paragraph (4) above shall be treated for the purposes of section 25 of the Taxes Act 1988 (deductions from rent for the purposes of corporation tax under Schedule A) as if that expense—awere included among the permitted deductions, within the meaning of that section;bwere a payment made in respect of the premises comprised in the lease; andcwere a payment which became due, and was made, immediately before the end of the period of account mentioned in sub-paragraph (4) above.6Where—aa deduction has been made by virtue of sub-paragraph (4) above in respect of an amount, butbsubsequently an amount (“the relevant credit”) is recovered or credited in respect of the amount in respect of which the deduction was made, andcthe relevant credit would, on the suppositions in paragraphs (a) to (c) of sub-paragraph (4) above, be brought into account for tax purposes as a trading receipt for a period of account of the current lessor,the taxable rent for that period of account shall be increased by the amount of the relevant credit.7In sub-paragraph (6) above, “the taxable rent”, in the case of a period of account of the current lessor, means the amount which would, apart from that sub-paragraph, be treated for tax purposes as rent from the lease—awhich arises to him, andbif rent arising to him from the lease is chargeable to corporation tax under Schedule A, to which he is entitled,in that period of account for the purpose of determining his liability to tax for the related chargeable period or periods.8After the time when the conditions in paragraph 3 above become satisfied as respects any particular lessor, no claim under section 41 of the Taxes Act 1988 shall be made in respect of any amount which that lessor was entitled to receive in respect of rents from the lease of the asset.9Where—abefore the time at which the conditions in paragraph 3 above become satisfied as respects any particular lessor, a claim under section 41 of the Taxes Act 1988 in respect of an amount which he was entitled to receive in respect of any rents from the lease of the asset has been made, andbthe claim is to any extent allowed,no amount shall be deductible under sub-paragraph (4) above in respect of that amount so far as so allowed. Relief for bad debts etc: cumulative accountancy rental excess91If, in the case of the lease, for any period of account—athe accountancy rental earnings exceed the normal rent,ba bad debt deduction falls to be made in respect of rent from the lease,cthe amount of the bad debt deduction exceeds the amount of the accountancy rental earnings, anddthere is a cumulative accountancy rental excess,the cumulative accountancy rental excess for the period of account shall be reduced (but not below nil) by the amount by which the bad debt deduction exceeds the accountancy rental earnings.2If, in the case of the lease, for any period of account—athe accountancy rental earnings do not exceed the normal rent,ba bad debt deduction falls to be made in respect of rent from the lease, andcthere is a cumulative accountancy rental excess for that period of account,sub-paragraph (3) below shall apply.3Where this sub-paragraph applies, the amount of the cumulative accountancy rental excess which may be set against the taxable rent for the period of account shall not exceed the amount (if any) by which the normal rent exceeds the bad debt deduction (and, if the normal rent does not exceed the bad debt deduction, shall be nil).4If, in a case where sub-paragraph (3) above applies, the bad debt deduction exceeds the normal rent for the period of account, the cumulative accountancy rental excess for the period of account shall be reduced (but not below nil) by the amount by which the bad debt deduction exceeds the normal rent.5Where—athe cumulative accountancy rental excess for any period of account of the current lessor has been reduced under sub-paragraph (1) or (4) above by reason of a bad debt deduction, butbin a subsequent period of account of his, an amount (“the relevant credit”) is recovered or credited in respect of the amount which constituted the bad debt deduction,the cumulative accountancy rental excess (if any) for the period of account mentioned in paragraph (b) above shall, subject to sub-paragraph (6) below, be increased by the relevant credit.6If, in a case falling within sub-paragraph (5) above,—athe relevant credit, exceedsbthe aggregate of the reductions falling within paragraph (a) of that sub-paragraph,the amount of the increase under that sub-paragraph shall not exceed that aggregate.7In this paragraph—bad debt deduction”, in relation to a period of account, means the aggregate of any sums falling within sub-paragraph (i), (ii) or (iii) of section 74(1)(j) of the Taxes Act 1988 in respect of amounts in respect of rents from the lease of the asset which are deductible as expenses for that period, whether by virtue of paragraph 8(4) above or otherwise;taxable rent” has the same meaning as in paragraph 6 above. Relief for bad debts etc: cumulative normal rental excess101If, in the case of the lease, for any period of account—athe accountancy rental earnings do not exceed the normal rent,ba bad debt deduction falls to be made in respect of rent from the lease,cthe amount of the bad debt deduction exceeds the amount of the normal rent, anddthere is a cumulative normal rental excess,the cumulative normal rental excess for the period of account shall be reduced (but not below nil) by the amount by which the bad debt deduction exceeds the normal rent.2If, in the case of the lease, for any period of account—athe accountancy rental earnings exceed the normal rent,ba bad debt deduction falls to be made in respect of rent from the lease, andcthere is a cumulative normal rental excess for that period of account,sub-paragraph (3) below shall apply.3Where this sub-paragraph applies, the amount of the cumulative normal rental excess which may be set against the taxable rent for the period of account shall not exceed the amount (if any) by which the accountancy rental earnings exceed the bad debt deduction (and, if the accountancy rental earnings do not exceed the bad debt deduction, shall be nil).4If, in a case where sub-paragraph (3) above applies, the bad debt deduction exceeds the accountancy rental earnings for the period of account, the cumulative normal rental excess for the period of account shall be reduced (but not below nil) by the amount by which the bad debt deduction exceeds the accountancy rental earnings.5Where—athe cumulative normal rental excess for any period of account of the current lessor has been reduced under sub-paragraph (1) or (4) above by reason of a bad debt deduction, butbin a subsequent period of account of his, an amount (“the relevant credit”) is recovered or credited in respect of the amount which constituted the bad debt deduction,the cumulative normal rental excess (if any) for the period of account mentioned in paragraph (b) above shall, subject to sub-paragraph (6) below, be increased by the relevant credit.6If, in a case falling within sub-paragraph (5) above,—athe relevant credit, exceedsbthe aggregate of the reductions falling within paragraph (a) of that sub-paragraph,the amount of the increase under that sub-paragraph shall not exceed that aggregate.7In this paragraph—bad debt deduction”, in relation to a period of account, means the aggregate of any sums falling within sub-paragraph (i), (ii) or (iii) of section 74(1)(j) of the Taxes Act 1988 in respect of amounts in respect of rents from the lease of the asset which are deductible as expenses for that period, whether by virtue of paragraph 8(4) above or otherwise;taxable rent” has the same meaning as in paragraph 6 above. Capital allowances111This paragraph applies in any case where an occasion occurs on or after 26th November 1996 on which a major lump sum falls to be paid in the case of the lease of the asset.2In this paragraph “the relevant occasion” means the occasion mentioned in sub-paragraph (1) above.3If capital expenditure incurred by the current lessor in respect of the leased asset is or has been taken into account for the purposes of any allowance or charge under any of the following groups of provisions, that is to say—aPart 2 of the Capital Allowances Act (plant and machinery allowances),bPart 5 of that Act (mineral extraction allowances), orcPart 8 of that Act (patent allowances)the group of provisions in question (“the relevant provisions”) shall have effect as if the relevant occasion were an event by reason of which a disposal value is to be brought into account of an amount equal (subject to any applicable limiting provision) to the amount or value of the major lump sum.4In this paragraph “limiting provision” means a provision to the effect that the disposal value of the asset in question is not to exceed an amount (“the limit”) described by reference to capital expenditure incurred in respect of the asset.5Where—aby virtue of sub-paragraph (3) above, a disposal value (“the relevant disposal value”) falls or has fallen to be brought into account by a person in respect of the leased asset for the purposes of the relevant provisions, andba limiting provision has effect in the case of those provisions,sub-paragraph (6) below shall apply.6Where this sub-paragraph applies, the limiting provision shall have effect (if or to the extent that it would not otherwise do so)—ain the case of the relevant disposal value, andbin the case of any simultaneous or subsequent disposal value,as if, instead of any particular disposal value, it were the aggregate amount of all the disposal values brought into account for the purposes of the relevant provisions by the current lessor in respect of the leased asset which is not to exceed the limit.7In sub-paragraph (6) above “simultaneous or subsequent disposal value” means any disposal value which falls to be brought into account by the current lessor in respect of the leased asset by reason of any event occurring subsequent to, or at the same time as, the event by reason of which the relevant disposal value falls to be brought into account.8If any allowance is or has been given in respect of capital expenditure incurred by the current lessor in respect of the leased asset under any provision of the Capital Allowances Act other than those specified in sub-paragraph (3) above, an amount equal to the lesser of—athe aggregate of the allowances so given (so far as not previously recovered or withdrawn),bthe amount or value of the major lump sum,shall, in relation to the current lessor, be treated as if it were a balancing charge to be made on him for the chargeable period . . . in which falls the relevant occasion.9If there is or has been allowed to the current lessor in respect of expenditure incurred in connection with the leased asset any deduction by virtue of section 40B(1) or 42 of the Finance (No. 2) Act 1992 (expenditure in connection with films etc.),sub-paragraph (10) below shall apply.10Where this sub-paragraph applies, the current lessor shall be treated as if receipts of a revenue nature of an amount equal to the amount (if any) by which—athe amount or value of the major lump sum, exceedsbthe amount or value of so much of the major lump sum as is treated as receipts of a revenue nature under section 40A(2) of the Finance (No. 2) Act 1992,arose to him from the trade or business in question on the relevant occasion.11If there is or has been allowed to the current lessor in respect of capital expenditure incurred in connection with the leased asset any deduction by virtue of—asection 91 of the Taxes Act 1988 (cemeteries etc), orbsection 91A or 91B of that Act (restoration and preparation expenditure in relation to a waste disposal site),sub-paragraph (12) below shall apply.12Where this sub-paragraph applies, the current lessor shall be treated as if trading receipts of an amount equal to the lesser of—athe amount or value of the major lump sum,bthe deductions previously allowed,arose to him from the trade in question on the relevant occasion.13If, in a case where this paragraph applies, allowances are or have been made to a person (“the contributor”) by virtue of sections 537 to 542 of the Capital Allowances Act (allowances in respect of contributions to capital expenditure) in respect of his contribution of a capital sum to expenditure on the provision of the leased asset, the foregoing provisions of this paragraph shall have effect in relation to the contributor and allowances by virtue of that section in respect of the contribution as they have effect in relation to the current lessor and allowances in respect of capital expenditure incurred by him in respect of the leased asset.14In sub-paragraph (8) above—the Capital Allowances Act” includes enactments which under the Taxes Act 1988 are to be treated as contained in the Capital Allowances Act;chargeable period” has the meaning given by section 6 of the Capital Allowances Act.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chargeable gains121If, in the case of the lease,—athe current lessor or a person connected with him disposes of—ithe lessor’s interest under the lease, oriithe leased asset, oriiian asset representing the leased asset, andbthere is, for the period of account of the current lessor in which the disposal takes place, any cumulative accountancy rental excess,then, in determining for the purposes of the Taxation of Chargeable Gains Act 1992 the amount of any gain accruing to the person making the disposal, the consideration for the disposal shall be treated as reduced (but not below nil) by setting against it the cumulative accountancy rental excess.2If the disposal mentioned in sub-paragraph (1) above is, for the purposes of the Taxation of Chargeable Gains Act 1992, a part-disposal of an asset—athe cumulative accountancy rental excess mentioned in sub-paragraph (1) above shall be apportioned between—ithe property disposed of, andiithe property which remains undisposed of,in the proportions in which the sums which under paragraph (a) or (b) of section 38(1) of that Act are attributable to the asset fall to be apportioned under section 42 of that Act; andbonly that portion of the cumulative accountancy rental excess which is so apportioned to the property disposed of shall be set against the consideration for the part-disposal in accordance with sub-paragraph (1) above.3Sub-paragraph (1) above is without prejudice to section 37 of the Taxation of Chargeable Gains Act 1992 (deduction for money or money’s worth charged to income tax etc) except as provided in sub-paragraph (4) below.4Section 37 of that Act shall not apply if or to the extent that any money or money’s worth which, apart from this sub-paragraph, would be excluded by virtue of that section from the consideration for a disposal is represented by any cumulative accountancy rental excess which in accordance with sub-paragraph (1) above—afalls to be set against the consideration for the disposal; orbhas fallen to be set against the consideration for a previous disposal made by the person making the disposal in question or a person connected with him.5Where the current lessor or a person connected with him disposes of—athe lessor’s interest under the lease, orbthe leased asset, orcan asset representing the leased asset,this Schedule shall have effect as if a period of account of the current lessor ended, and another period of account of his began, immediately before the disposal.6If two or more disposals falling within sub-paragraph (1) above are made at the same time—athe cumulative accountancy rental excess mentioned in sub-paragraph (1) above shall, subject to sub-paragraph (2) above, be apportioned between them in such proportions as are just and reasonable; andbsub-paragraph (5) above shall have effect in relation to those disposals as if they together constituted a single disposal.7In this paragraph “dispose” and “disposal” shall be construed in accordance with the Taxation of Chargeable Gains Act 1992. Existing schemes where this Part does not at first apply131This paragraph applies in any case where—athe lease of the asset forms part of an existing scheme, butbthe conditions in paragraph 3 above become satisfied after 26th November 1996.2This Schedule shall have effect as if a period of account of the current lessor ended, and another period of account of his began—aimmediately before the time at which the conditions in paragraph 3 above become satisfied as mentioned in sub-paragraph (1)(b) above; andbimmediately after the time at which those conditions become so satisfied.3If, on the assumption that this Part of this Schedule (other than this paragraph) had applied in the case of the lease at all times on or after 26th November 1996, there would be an amount of cumulative accountancy rental excess for the period of account of the current lessor in which the conditions in paragraph 3 above become satisfied, then—athat amount shall be the cumulative accountancy rental excess for that period of account; andbthe current lessor shall be treated for tax purposes as if, in the immediately preceding period of account, he had been entitled to, and there had arisen to him, rent from the lease of an amount equal to that cumulative accountancy rental excess.4If, on the assumption that this Part of this Schedule (other than this paragraph) had applied in the case of the lease at all times on or after 26th November 1996, there would be an amount of cumulative normal rental excess for the period of account of the current lessor in which the conditions in paragraph 3 above become satisfied, that amount shall be the cumulative normal rental excess for that period of account.5The amount of rent mentioned in sub-paragraph (3)(b) above—ais in addition to any other rent from the lease for the period of account there mentioned; andbshall be left out of account for the purposes of paragraph 5 above.6Where a person is treated under sub-paragraph (3)(b) above as if he had in a period of account been entitled to, and there had arisen to him, any rent, the rent shall be treated for tax purposes as if it had accrued, and he had become entitled to it, immediately before the end of that period of account.7In determining for the purposes of this paragraph the amount which would, on the assumption in sub-paragraph (3) or (4) above, be the amount of—athe cumulative accountancy rental excess, orbthe cumulative normal rental excess,for the period of account of the current lessor in which the conditions in paragraph 3 above become satisfied, any amount of relief given for a period of account on a claim under section 41 of the Taxes Act 1988 shall be treated as if it had instead been given under paragraph 8(4) above for that period of account. New schemes where this Part begins to apply after Part II has applied14If—athe conditions in paragraph 3 above become satisfied in the case of the lease of the asset, andbimmediately before those conditions became so satisfied, Part II of this Schedule applied in the case of the lease,then, in determining the cumulative accountancy rental excess or the cumulative normal rental excess for any period of account ending after those conditions become satisfied, this Schedule shall have effect as if this Part of this Schedule had applied in relation to the lease at any time when Part II of this Schedule applied in relation to it.Words in Sch. 12 para. 1(1)(c) repealed (24.7.2002) by Finance Act 2002 (c. 23), s. 141, Sch. 40 Pt. 3(16)Words in Sch. 12 para. 1(1)(c) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(e)Words in Sch. 12 para. 1(2)(a) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(e)Words in Sch. 12 para. 3(1)(2) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(e)Words in Sch. 12 para. 3(1)(2) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(e)Words in Sch. 12 para. 3(1)(2) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(e)Sch. 12 para. 3(6) repealed (31.7.1998 with effect in accordance with s. 38(2)(3) of the amending Act) by 1998 c. 36, s. 165, Sch. 27 Pt. III(4) noteSch. 12 para. 3(6) excluded (31.7.1998 in relation to periods of account beginning on or after 1.4.1998) by 1998 c. 36, s. 38(1), Sch. 5 para. 74(1)(2)Words in Sch. 12 para. 4(5) repealed (24.7.2002) by Finance Act 2002 (c. 23), s. 141, Sch. 40 Pt. 3(16)Words in Sch. 12 para. 4(5) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(e)Words in Sch. 12 para. 6(1)(a) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(e)Sch. 12 para. 6(9)(b) repealed (31.7.1998 with effect in accordance with s. 38(2)(3) of the amending Act) by 1998 c. 36, s. 165, Sch. 27 Pt. III(4) NoteSch. 12 para. 6(9)(b) excluded (31.7.1998 in relation to periods of account beginning on or after 1.4.1998) by 1998 c. 36, s. 38(1), Sch. 5 para. 74(1)(2)1992 c. 12. Sch. 12 para. 8 repealed (31.7.1998 with effect in accordance with s. 38(2)(3) of the amending Act) by 1998 c. 36, s. 165, Sch. 27 Pt. III(4) noteSch. 12 para. 8(1)-(7) excluded (31.7.1998 in relation to periods of account beginning on or after 1.4.1998) by 1998 c. 36, s. 38(1), Sch. 5 para. 74(1)(2)Words in Sch. 12 para. 8(4)(a) substituted (31.7.1998) by 1998 c. 36, s. 46(3)(a), Sch. 7 para. 12Sch. 12 para. 8(8) excluded (31.7.1998) by 1998 c. 36, s. 38(1), Sch. 5 para. 74(1)(2)Sch. 12 para. 8(9) excluded (31.7.1998) by 1998 c. 36, s. 38(1) Sch. 5 para. 74(1)(2)Sch. 12 para. 11(3)(a)-(c) substituted (22.3.2001 with effect as mentioned in s. 579(1) of the amending Act) by 2001 c. 2, s. 578, Sch. 2 para. 98(1)Words in Sch. 12 para. 11(8) substituted (22.3.2001 with effect as mentioned in s. 579(1) of the amending Act) by 2001 c. 2, s. 578, Sch. 2 para. 98(2)Words in Sch. 12 para. 11(8) repealed (22.3.2001 with effect as mentioned in s. 579(1) of the amending Act) by 2001 c. 2, ss. 578, 580, Sch. 2 para. 98(2), Sch. 4Words in Sch. 12 para. 11(9) substituted (22.3.2001 with effect as mentioned in s. 579(1) of the amending Act) for Sch. 12 para. 11(9)(a)(b) by 2001 c. 2, s. 578, Sch. 2 para. 98(3)Words in Sch. 12 para. 11(10)(b) substituted (22.3.2001 with effect as mentioned in s. 579(1) of the amending Act) by 2001 c. 2, s. 578, Sch. 2 para. 98(4)Words in Sch. 12 para. 11(13) substituted (22.3.2001 with effect as mentioned in s. 579(1) of the amending Act) by 2001 c. 2, s. 578, Sch. 2 para. 98(5)Sch. 12 para. 11(14) substituted (22.3.2001 with effect as mentioned in s. 579(1) of the amending Act) by 2001 c. 2, s. 578, Sch. 2 para. 98(6)Sch. 12 para. 11(15) repealed (22.3.2001 with effect as mentioned in s. 579(1) of the amending Act) by 2001 c. 2, ss. 578, 580, Sch. 2 para. 98(7), Sch. 41992 c. 12. 1992 c. 12. 1992 c. 12. Sch. 12 para. 13(7) repealed (31.7.1998 with effect in accordance with s. 38(2)(3) of the amending Act) by 1998 c. 36, s. 165, Sch. 27 Pt. III(4) note
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<Title> SCHEDULES</Title>
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<Number>SCHEDULE 12</Number>
<TitleBlock>
<Title> Leasing arrangements: finance leases and loans</Title>
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<Number>Part I</Number>
<Title> Leasing arrangements where any of the return on investment is in capital form</Title>
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<Title> Purpose of this Part of this Schedule</Title>
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<P2para>
<Text>This Part of this Schedule is concerned with arrangements—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/1/a" id="schedule-12-paragraph-1-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>which involve the lease of an asset;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/1/b" id="schedule-12-paragraph-1-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>which are or have been entered into by companies or other persons;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/1/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/1/c" id="schedule-12-paragraph-1-1-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>
which are of such a kind as,
<CommentaryRef Ref="c16241291"/>
. . . falls
<CommentaryRef Ref="c16241291"/>
. . . to be treated in accordance with
<Substitution ChangeId="d29p21883" CommentaryRef="c16240261">generally accepted accounting practice</Substitution>
as finance leases or loans; and
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/1/d/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/1/d" id="schedule-12-paragraph-1-1-d">
<Pnumber>d</Pnumber>
<P3para>
<Text>whose effect is that some or all of the return on investment in respect of the finance lease or loan—</Text>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/1/d/i/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/1/d/i" id="schedule-12-paragraph-1-1-d-i">
<Pnumber>i</Pnumber>
<P4para>
<Text>is or may be in the form of a sum which is not rent; and</Text>
</P4para>
</P4>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/1/d/ii/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/1/d/ii" id="schedule-12-paragraph-1-1-d-ii">
<Pnumber>ii</Pnumber>
<P4para>
<Text>would not, apart from this Schedule, be wholly brought into account for tax purposes as rent from the lease.</Text>
</P4para>
</P4>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/2" id="schedule-12-paragraph-1-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>The principal purpose of this Part of this Schedule is, in the case of any such arrangements,—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/2/a" id="schedule-12-paragraph-1-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>
to charge any person entitled to the lessor’s interest under the lease of the asset to tax from time to time on amounts of income determined by reference to those which fall for accounting purposes to be treated in accordance with
<Substitution ChangeId="d29p21917" CommentaryRef="c16241381">generally accepted accounting practice</Substitution>
as the income return, on and after 26th November 1996, on investment in respect of the finance lease or loan (taking into account the substance of the matter as a whole, including in particular the state of affairs as between connected persons, or within a group of companies, as reflected or falling to be reflected in accounts of any of those persons or in consolidated group accounts);
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/1/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/2/b" id="schedule-12-paragraph-1-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>where the sum mentioned in sub-paragraph (1)(d) above falls due, to recover by reference to that sum the whole or any part of any reliefs, allowances or deductions which are or have been allowed or made in respect of capital expenditure incurred in respect of the leased asset.</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/application-of-this-part-of-this-schedule/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/application-of-this-part-of-this-schedule" NumberOfProvisions="1" RestrictEndDate="2006-07-19" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-application-of-this-part-of-this-schedule">
<Title> Application of this Part of this Schedule</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2" RestrictEndDate="2006-07-19" RestrictStartDate="1997-03-19" id="schedule-12-paragraph-2">
<Pnumber>2</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/1" id="schedule-12-paragraph-2-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>This Part of this Schedule applies in any case where (whether before or after the passing of this Act)—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/1/a" id="schedule-12-paragraph-2-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>a lease of an asset is or has been granted; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/1/b" id="schedule-12-paragraph-2-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>in the case of the lease, the conditions in paragraph 3 below are or have been satisfied at some time in a period of account of the current lessor.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/2" id="schedule-12-paragraph-2-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>Where the conditions in paragraph 3 below have been satisfied at some time in a period of account of the person who was at that time the lessor, they shall be taken to continue to be satisfied for the purposes of this Part of this Schedule unless and until—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/2/a" id="schedule-12-paragraph-2-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the asset ceases to be leased under the lease; or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/2/b" id="schedule-12-paragraph-2-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the lessor’s interest under the lease is assigned to a person who is not connected with any of the persons described in sub-paragraph (3) below.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/3" id="schedule-12-paragraph-2-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>Those persons are—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/3/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/3/a" id="schedule-12-paragraph-2-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the assignor;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/3/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/3/b" id="schedule-12-paragraph-2-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>any person who was the lessor at some time before the assignment; or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/3/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/3/c" id="schedule-12-paragraph-2-3-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>any person who at some time after the assignment becomes the lessor pursuant to arrangements made by a person who was the lessor, or was connected with the lessor, at some time before the assignment.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/2/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/2/4" id="schedule-12-paragraph-2-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>Nothing in sub-paragraph (2) above prevents this Part of this Schedule from again applying in the case of the lease if the conditions for its application are satisfied after the assignment.</Text>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/the-conditions/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/the-conditions" NumberOfProvisions="1" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-the-conditions">
<Title> The conditions</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3" RestrictEndDate="2010-04-01" RestrictExtent="E+W+S+N.I." RestrictStartDate="2002-07-24" id="schedule-12-paragraph-3">
<Pnumber>3</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/1" id="schedule-12-paragraph-3-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>
The condition in this sub-paragraph is that at the relevant time the leasing arrangements are such as fall for accounting purposes to be treated in accordance with
<Substitution ChangeId="d29p22017" CommentaryRef="c16319651">generally accepted accounting practice</Substitution>
as a finance lease or a loan and—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/1/a" id="schedule-12-paragraph-3-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>
the lessor, or a person connected with him, falls for accounting purposes to be treated in accordance with
<Substitution ChangeId="d29p22027" CommentaryRef="c16785461">generally accepted accounting practice</Substitution>
as the finance lessor in relation to the finance lease or loan, or
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/1/b" id="schedule-12-paragraph-3-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>
the finance lease or loan falls for accounting purposes to be treated, in accordance with
<Substitution ChangeId="d29p22037" CommentaryRef="c16785491">generally accepted accounting practice</Substitution>
, as subsisting for the purposes of consolidated group accounts of a group of companies of which the lessor is a member.
</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/2" id="schedule-12-paragraph-3-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>
The condition in this sub-paragraph is that, under the leasing arrangements, there is or may be payable to the lessor, or to a person connected with him, a sum (a “
<Term id="term-major-lump-sum">major lump sum</Term>
”) which is not rent but is a sum such as falls for accounting purposes to be treated in accordance with
<Substitution ChangeId="d29p22050" CommentaryRef="c16319651">generally accepted accounting practice</Substitution>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/2/a" id="schedule-12-paragraph-3-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>as to part, as repayment of some or all of the investment in respect of a finance lease or loan; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/2/b" id="schedule-12-paragraph-3-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>as to part, as a return on investment in respect of a finance lease or loan.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/3" id="schedule-12-paragraph-3-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>The condition in this sub-paragraph is that not all of that part of a major lump sum which falls within paragraph (b) of sub-paragraph (2) above would, apart from this Schedule, fall to be brought into account for tax purposes in chargeable periods of the lessor ending with the relevant chargeable period as the normal rent from the lease for periods of account of the lessor.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/4" id="schedule-12-paragraph-3-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>The condition in this sub-paragraph is that, as respects the lessor at the relevant time,—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/4/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/4/a" id="schedule-12-paragraph-3-4-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the period of account of his in which the relevant time falls, or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/4/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/4/b" id="schedule-12-paragraph-3-4-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>an earlier period of account of his during which he was the lessor,</Text>
</P3para>
</P3>
<Text>is a period of account for which the accountancy rental earnings in respect of the lease exceed the normal rent for the period.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/5" id="schedule-12-paragraph-3-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>The condition in this sub-paragraph is that at the relevant time—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/5/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/5/a" id="schedule-12-paragraph-3-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>arrangements falling within sub-paragraph (1) of paragraph 4 below exist; or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/5/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/5/b" id="schedule-12-paragraph-3-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>if the condition in paragraph (a) above is not satisfied, circumstances falling within sub-paragraph (2) of that paragraph exist.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/6" id="schedule-12-paragraph-3-6">
<Pnumber>
<Addition ChangeId="d29p22110" CommentaryRef="c14710311">
<CommentaryRef Ref="c14710321"/>
6
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22110" CommentaryRef="c14710311">In determining the normal rent for a period of account for the purpose of determining whether the condition in sub-paragraph (4) above is satisfied, rent which for the purposes of corporation tax under Schedule A falls to be brought into account as a person becomes entitled to it shall be treated—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/6/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/6/a" id="schedule-12-paragraph-3-6-a">
<Pnumber>
<Addition ChangeId="d29p22110" CommentaryRef="c14710311">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22110" CommentaryRef="c14710311">as if it accrued evenly throughout the period to which, in accordance with the terms of the lease, each payment to which the person becomes entitled relates, and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/6/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/6/b" id="schedule-12-paragraph-3-6-b">
<Pnumber>
<Addition ChangeId="d29p22110" CommentaryRef="c14710311">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22110" CommentaryRef="c14710311">as if he had become entitled to the rent as it so accrues,</Addition>
</Text>
</P3para>
</P3>
<Text>
<Addition ChangeId="d29p22110" CommentaryRef="c14710311">unless any such payment falls due more than 12 months after the time at which any of the rent to which that payment relates is so treated as accruing.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/7" id="schedule-12-paragraph-3-7">
<Pnumber>7</Pnumber>
<P2para>
<Text>In determining the normal rent for a period of account for the purpose of determining whether the condition in sub-paragraph (4) above is satisfied, rent which falls to be brought into account for tax purposes as it falls due shall be treated—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/7/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/7/a" id="schedule-12-paragraph-3-7-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>as accruing evenly throughout the period to which, in accordance with the terms of the lease, each payment falling due relates, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/7/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/7/b" id="schedule-12-paragraph-3-7-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>as falling due as it so accrues,</Text>
</P3para>
</P3>
<Text>unless any such payment falls due more than 12 months after the time at which any of the rent to which that payment relates is so treated as accruing.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/3/8/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/8" id="schedule-12-paragraph-3-8">
<Pnumber>8</Pnumber>
<P2para>
<Text>In this paragraph—</Text>
<UnorderedList Decoration="none" Class="Definition">
<ListItem>
<Para>
<Text>
<Term id="term-the-relevant-chargeable-period">the relevant chargeable period</Term>
”, in the case of any major lump sum, means—
</Text>
</Para>
<OrderedList Type="alpha" Decoration="parens">
<ListItem NumberOverride="a">
<Para>
<Text>the chargeable period of the lessor which is related to his period of account in which that major lump sum is or may be payable in accordance with the leasing arrangements; or</Text>
</Para>
</ListItem>
<ListItem NumberOverride="b">
<Para>
<Text>if there are two or more such chargeable periods, the latest of them;</Text>
</Para>
</ListItem>
</OrderedList>
</ListItem>
<ListItem>
<Para>
<Text>
<Term id="term-the-relevant-time">the relevant time</Term>
” means the time as at which it falls to be determined for the purposes of sub-paragraph (1) or (2) of paragraph 2 above whether the conditions in this paragraph are or, as the case may be, were satisfied.
</Text>
</Para>
</ListItem>
</UnorderedList>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/the-arrangements-and-circumstances-in-paragraph-35/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/the-arrangements-and-circumstances-in-paragraph-35" NumberOfProvisions="1" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-the-arrangements-and-circumstances-in-paragraph-35">
<Title> The arrangements and circumstances in paragraph 3(5)</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4" RestrictEndDate="2010-04-01" RestrictExtent="E+W+S+N.I." RestrictStartDate="2002-07-24" id="schedule-12-paragraph-4">
<Pnumber>4</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/1" id="schedule-12-paragraph-4-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>The arrangements mentioned in paragraph 3(5)(a) above are arrangements under which—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/1/a" id="schedule-12-paragraph-4-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the lessee or a person connected with him may acquire, whether directly or indirectly, the leased asset, or an asset representing the leased asset, from the lessor or a person connected with the lessor; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/1/b" id="schedule-12-paragraph-4-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>in connection with that acquisition, the lessor or a person connected with him may receive, whether directly or indirectly, a qualifying lump sum from the lessee or a person connected with the lessee.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/2" id="schedule-12-paragraph-4-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>The circumstances mentioned in paragraph 3(5)(b) above are circumstances which make it more likely—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/2/a" id="schedule-12-paragraph-4-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>that the events described in sub-paragraph (3) below will occur, than</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/2/b" id="schedule-12-paragraph-4-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>that the event described in sub-paragraph (4) below will occur.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/3" id="schedule-12-paragraph-4-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>The events mentioned in sub-paragraph (2)(a) above are—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/3/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/3/a" id="schedule-12-paragraph-4-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>that the lessee or a person connected with him will acquire, whether directly or indirectly, the leased asset or an asset representing the leased asset from the lessor or a person connected with the lessor; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/3/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/3/b" id="schedule-12-paragraph-4-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>that, in connection with that acquisition, the lessor or a person connected with him will receive, whether directly or indirectly, a qualifying lump sum from the lessee or a person connected with the lessee.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/4" id="schedule-12-paragraph-4-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>The event mentioned in sub-paragraph (2)(b) above is that, before any such acquisition as is mentioned in sub-paragraph (3) above takes place, the leased asset or, as the case may be, the asset representing the leased asset, will have been acquired, in a sale on the open market, by a person who is not the lessor or the lessee and who is not connected with either of them.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/4/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/5" id="schedule-12-paragraph-4-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>
In this paragraph, “
<Term id="term-qualifying-lump-sum">qualifying lump sum</Term>
” means any sum which is not rent but at least part of which would
<CommentaryRef Ref="c16323961"/>
. . . fall for accounting purposes to be treated in accordance with
<Substitution ChangeId="d29p22263" CommentaryRef="c16323901">generally accepted accounting practice</Substitution>
as a return on investment in respect of a finance lease or loan.
</Text>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/current-lessor-to-be-taxed-by-reference-to-accountancy-rental-earnings/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/current-lessor-to-be-taxed-by-reference-to-accountancy-rental-earnings" NumberOfProvisions="1" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-current-lessor-to-be-taxed-by-reference-to-accountancy-rental-earnings">
<Title> Current lessor to be taxed by reference to accountancy rental earnings</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/5" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-paragraph-5">
<Pnumber>5</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/5/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/5/1" id="schedule-12-paragraph-5-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>Where, in the case of any period of account of the current lessor,—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/5/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/5/1/a" id="schedule-12-paragraph-5-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>this Part of this Schedule applies in the case of the lease, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/5/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/5/1/b" id="schedule-12-paragraph-5-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the accountancy rental earnings in respect of the lease for that period of account exceed the normal rent for that period,</Text>
</P3para>
</P3>
<Text>he shall be treated for tax purposes as if in that period of account he had been entitled to, and there had arisen to him, rent from the lease of an amount equal to those accountancy rental earnings (instead of the normal rent referred to in paragraph (b) above).</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/5/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/5/2" id="schedule-12-paragraph-5-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>Where a person is treated under sub-paragraph (1) above as if he had in a period of account been entitled to, and there had arisen to him, any rent from a lease of an asset, the rent shall be treated for tax purposes—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/5/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/5/2/a" id="schedule-12-paragraph-5-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>as if it had accrued at an even rate throughout so much of the period of account as falls within the period for which the asset is leased; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/5/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/5/2/b" id="schedule-12-paragraph-5-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>as if that person had become entitled to it as it accrued.</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/reduction-of-taxable-rent-by-certain-excesses/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/reduction-of-taxable-rent-by-certain-excesses" NumberOfProvisions="1" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-reduction-of-taxable-rent-by-certain-excesses">
<Title> Reduction of taxable rent by certain excesses</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6" RestrictEndDate="2010-04-01" RestrictExtent="E+W+S+N.I." RestrictStartDate="2002-07-24" id="schedule-12-paragraph-6">
<Pnumber>6</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/1" id="schedule-12-paragraph-6-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>Subject to sub-paragraph (6)(b) below, if in the case of the lease—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/1/a" id="schedule-12-paragraph-6-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>
the normal rent for a period of account of the current lessor throughout which the leasing arrangements are such as fall for accounting purposes to be treated in accordance with
<Substitution ChangeId="d29p22335" CommentaryRef="c16324111">generally accepted accounting practice</Substitution>
as a finance lease or loan, exceeds
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/1/b" id="schedule-12-paragraph-6-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the accountancy rental earnings for the period,</Text>
</P3para>
</P3>
<Text>there is for the purposes of this paragraph a “normal rental excess” for that period of an amount equal to the excess.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/2" id="schedule-12-paragraph-6-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>
In this paragraph the “
<Term id="term-cumulative-normal-rental-excess">cumulative normal rental excess</Term>
” in the case of the lease and a period of account of the current lessor means so much of the aggregate of the normal rental excesses for previous periods of account of his as (after taking account of any increases under paragraph 10 below) has not been—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/2/a" id="schedule-12-paragraph-6-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>set off under this paragraph against the taxable rent for any such previous period; or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/2/b" id="schedule-12-paragraph-6-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>reduced under paragraph 10 below.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/3" id="schedule-12-paragraph-6-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>
Subject to sub-paragraph (8)(b) below, if the taxable rent in the case of the lease for a period of account of the current lessor is, by virtue of paragraph 5 above, an amount equal to the accountancy rental earnings, there is for the purposes of this paragraph an “
<Term id="term-accountancy-rental-excess">accountancy rental excess</Term>
” for that period of an amount equal to the difference between—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/3/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/3/a" id="schedule-12-paragraph-6-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the accountancy rental earnings for the period of account; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/3/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/3/b" id="schedule-12-paragraph-6-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the normal rent for the period.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/4" id="schedule-12-paragraph-6-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>
In this paragraph the “
<Term id="term-cumulative-accountancy-rental-excess">cumulative accountancy rental excess</Term>
”, in the case of the lease and a period of account of the current lessor, means so much of the aggregate of the accountancy rental excesses for previous periods of account of his as (after taking account of any increases under paragraph 9 below) has not been—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/4/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/4/a" id="schedule-12-paragraph-6-4-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>set off under this paragraph against the taxable rent for any such previous period;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/4/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/4/b" id="schedule-12-paragraph-6-4-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>reduced under paragraph 9 below; or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/4/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/4/c" id="schedule-12-paragraph-6-4-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>set off under paragraph 12 below against the consideration for a disposal.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/5" id="schedule-12-paragraph-6-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>If a period of account of the current lessor is one—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/5/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/5/a" id="schedule-12-paragraph-6-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>for which the normal rent exceeds the accountancy rental earnings, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/5/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/5/b" id="schedule-12-paragraph-6-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>for which there is any cumulative accountancy rental excess,</Text>
</P3para>
</P3>
<Text>sub-paragraph (6) below shall apply.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/6" id="schedule-12-paragraph-6-6">
<Pnumber>6</Pnumber>
<P2para>
<Text>Where this sub-paragraph applies—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/6/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/6/a" id="schedule-12-paragraph-6-6-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the taxable rent for the period of account shall be reduced (but not below the accountancy rental earnings) by setting against it the cumulative accountancy rental excess; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/6/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/6/b" id="schedule-12-paragraph-6-6-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the normal rental excess for the period shall be the amount (if any) by which—</Text>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/6/b/i/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/6/b/i" id="schedule-12-paragraph-6-6-b-i">
<Pnumber>i</Pnumber>
<P4para>
<Text>the normal rent, reduced by an amount equal to the reduction under paragraph (a) above, exceeds</Text>
</P4para>
</P4>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/6/b/ii/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/6/b/ii" id="schedule-12-paragraph-6-6-b-ii">
<Pnumber>ii</Pnumber>
<P4para>
<Text>the accountancy rental earnings,</Text>
</P4para>
</P4>
<Text>and if there is no such excess, there is no normal rental excess for the period.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/7" id="schedule-12-paragraph-6-7">
<Pnumber>7</Pnumber>
<P2para>
<Text>If a period of account of the current lessor is one—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/7/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/7/a" id="schedule-12-paragraph-6-7-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>for which the taxable rent in the case of the lease is, by virtue of paragraph 5 above, an amount equal to the accountancy rental earnings, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/7/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/7/b" id="schedule-12-paragraph-6-7-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>there is any cumulative normal rental excess,</Text>
</P3para>
</P3>
<Text>sub-paragraph (8) below shall apply.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/8/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/8" id="schedule-12-paragraph-6-8">
<Pnumber>8</Pnumber>
<P2para>
<Text>Where this sub-paragraph applies—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/8/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/8/a" id="schedule-12-paragraph-6-8-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the taxable rent for the period of account shall be reduced (but not below the normal rent) by setting against it the cumulative normal rental excess, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/8/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/8/b" id="schedule-12-paragraph-6-8-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the accountancy rental excess for the period shall be the amount (if any) by which—</Text>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/8/b/i/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/8/b/i" id="schedule-12-paragraph-6-8-b-i">
<Pnumber>i</Pnumber>
<P4para>
<Text>the accountancy rental earnings, reduced by an amount equal to the reduction under paragraph (a) above, exceeds</Text>
</P4para>
</P4>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/8/b/ii/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/8/b/ii" id="schedule-12-paragraph-6-8-b-ii">
<Pnumber>ii</Pnumber>
<P4para>
<Text>the normal rent,</Text>
</P4para>
</P4>
<Text>and if there is no such excess, there is no accountancy rental excess for the period.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/9/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/9" id="schedule-12-paragraph-6-9">
<Pnumber>9</Pnumber>
<P2para>
<Text>
In this paragraph “
<Term id="term-the-taxable-rent">the taxable rent</Term>
”, in the case of a period of account of the current lessor, means the amount which would, apart from this paragraph and paragraph 8(6) below, be treated for tax purposes as rent from the lease—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/9/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/9/a" id="schedule-12-paragraph-6-9-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>which arises to him, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/6/9/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/9/b" id="schedule-12-paragraph-6-9-b">
<Pnumber>
<Addition ChangeId="d29p22535" CommentaryRef="c14710331">
<CommentaryRef Ref="c14710341"/>
b
</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22535" CommentaryRef="c14710331">if rent arising to him from the lease is chargeable to corporation tax under Schedule A, to which he is entitled,</Addition>
</Text>
</P3para>
</P3>
<Text>in that period of account for the purpose of determining his liability to tax for the related chargeable period or periods.</Text>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/assignments-on-which-neither-a-gain-nor-a-loss-accrues/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/assignments-on-which-neither-a-gain-nor-a-loss-accrues" NumberOfProvisions="1" RestrictEndDate="2008-07-21" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-assignments-on-which-neither-a-gain-nor-a-loss-accrues">
<Title> Assignments on which neither a gain nor a loss accrues</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7" RestrictEndDate="2008-07-21" RestrictStartDate="1997-03-19" id="schedule-12-paragraph-7">
<Pnumber>7</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/1" id="schedule-12-paragraph-7-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>This paragraph applies in any case where—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/1/a" id="schedule-12-paragraph-7-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the current lessor assigns the lessor’s interest under the lease; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/1/b" id="schedule-12-paragraph-7-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>
the assignment is a disposal on which, by virtue of any of the enactments specified in section 35(3)(d) of the
<CommentaryRef Ref="c14710351"/>
Taxation of Chargeable Gains Act 1992, neither a gain nor a loss accrues.
</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/2" id="schedule-12-paragraph-7-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>Where this paragraph applies, this Schedule shall have effect as if—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/2/a" id="schedule-12-paragraph-7-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>a period of account of the assignor ended, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/2/b" id="schedule-12-paragraph-7-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a period of account of the assignee began,</Text>
</P3para>
</P3>
<Text>with the assignment.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/3" id="schedule-12-paragraph-7-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>Where this paragraph applies—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/3/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/3/a" id="schedule-12-paragraph-7-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>any unused cumulative accountancy rental excess, or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/3/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/3/b" id="schedule-12-paragraph-7-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>any unused cumulative normal rental excess,</Text>
</P3para>
</P3>
<Text>of the assignor shall become the cumulative accountancy rental excess or the cumulative normal rental excess (as the case may be) for the period of account of the assignee which begins with the assignment.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/7/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/7/4" id="schedule-12-paragraph-7-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>In sub-paragraph (3) above—</Text>
<UnorderedList Decoration="none" Class="Definition">
<ListItem>
<Para>
<Text>
<Term id="term-unused-cumulative-accountancy-rental-excess">unused cumulative accountancy rental excess</Term>
”, in relation to the assignor, means the aggregate of—
</Text>
</Para>
<OrderedList Type="alpha" Decoration="parens">
<ListItem NumberOverride="a">
<Para>
<Text>any cumulative accountancy rental excess, and</Text>
</Para>
</ListItem>
<ListItem NumberOverride="b">
<Para>
<Text>any accountancy rental excess,</Text>
</Para>
</ListItem>
</OrderedList>
<Para>
<Text>for the period of account of his which ends with the assignment;</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Term id="term-unused-cumulative-normal-rental-excess">unused cumulative normal rental excess</Term>
”, in relation to the assignor, means the aggregate of—
</Text>
</Para>
<OrderedList Type="alpha" Decoration="parens">
<ListItem NumberOverride="a">
<Para>
<Text>any cumulative normal rental excess, and</Text>
</Para>
</ListItem>
<ListItem NumberOverride="b">
<Para>
<Text>any normal rental excess,</Text>
</Para>
</ListItem>
</OrderedList>
<Para>
<Text>for the period of account of his which ends with the assignment.</Text>
</Para>
</ListItem>
</UnorderedList>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/relief-for-bad-debts-etc-corporation-tax-under-schedule-a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/relief-for-bad-debts-etc-corporation-tax-under-schedule-a" NumberOfProvisions="1" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-relief-for-bad-debts-etc-corporation-tax-under-schedule-a">
<Title>
Relief for bad debts
<Abbreviation Expansion="Et cetera" xml:lang="la">etc</Abbreviation>
: corporation tax under Schedule A
</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8" RestrictExtent="E+W+S+N.I." RestrictStartDate="1998-07-31" id="schedule-12-paragraph-8">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">8</Addition>
</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/1" id="schedule-12-paragraph-8-1">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710371"/>
1
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">Section 41 of the Taxes Act 1988 (which gives a person relief from corporation tax under Schedule A for rent etc not paid, by treating him as if he had never been entitled to the rent) shall be disregarded in determining for the purposes of this Part of this Schedule the amount of—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/1/a" id="schedule-12-paragraph-8-1-a">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the accountancy rental earnings in respect of the lease, or</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/1/b" id="schedule-12-paragraph-8-1-b">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the normal rent from the lease,</Addition>
</Text>
</P3para>
</P3>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">for any period of account.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/2" id="schedule-12-paragraph-8-2">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710371"/>
2
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">Where for any period of account—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/2/a" id="schedule-12-paragraph-8-2-a">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a person is treated under paragraph 5 above as if he had been entitled to receive an amount of rent, and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/2/b" id="schedule-12-paragraph-8-2-b">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the amount is in respect of rents on the profits or gains arising from which that person is chargeable to corporation tax under Schedule A,</Addition>
</Text>
</P3para>
</P3>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">section 41 of the Taxes Act 1988 shall not have effect in relation to amounts in respect of rents from the lease of the asset for that or any subsequent period of account of his, or of any person to whom the lessor’s interest under the lease is assigned, until the lease terminates or is assigned in circumstances such that paragraph 7 above does not apply.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/3" id="schedule-12-paragraph-8-3">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710371"/>
3
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">Where, by virtue of sub-paragraph (2) above, section 41 of the Taxes Act 1988 does not apply, sub-paragraph (4) below shall apply instead.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/4" id="schedule-12-paragraph-8-4">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710371"/>
4
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">In computing the profits or gains on which a person is chargeable to corporation tax under Schedule A in a case falling within sub-paragraph (2) above, any sums falling within sub-paragraph (i), (ii) or (iii) of section 74(1)(j) of the Taxes Act 1988 in respect of amounts in respect of rents from the lease of the asset shall be deductible in a period of account as an expense to the extent that they would be deductible in that period of account if—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/4/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/4/a" id="schedule-12-paragraph-8-4-a">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">amounts in respect of rents from the lease of the asset fell to be taken into account as trading receipts in computing the </Addition>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<Addition ChangeId="d29p22732" CommentaryRef="c14710411">profits</Addition>
</Addition>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361"> of a trade carried on by the person;</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/4/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/4/b" id="schedule-12-paragraph-8-4-b">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the asset were leased in the course of that trade; and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/4/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/4/c" id="schedule-12-paragraph-8-4-c">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">c</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the charge to corporation tax under Schedule A were in respect of such annual profits or gains as are described in that Schedule arising from a trade.</Addition>
</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/5" id="schedule-12-paragraph-8-5">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710371"/>
5
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">Any such expense as is mentioned in sub-paragraph (4) above shall be treated for the purposes of section 25 of the Taxes Act 1988 (deductions from rent for the purposes of corporation tax under Schedule A) as if that expense—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/5/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/5/a" id="schedule-12-paragraph-8-5-a">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">were included among the permitted deductions, within the meaning of that section;</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/5/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/5/b" id="schedule-12-paragraph-8-5-b">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">were a payment made in respect of the premises comprised in the lease; and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/5/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/5/c" id="schedule-12-paragraph-8-5-c">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">c</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">were a payment which became due, and was made, immediately before the end of the period of account mentioned in sub-paragraph (4) above.</Addition>
</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/6" id="schedule-12-paragraph-8-6">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710371"/>
6
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">Where—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/6/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/6/a" id="schedule-12-paragraph-8-6-a">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a deduction has been made by virtue of sub-paragraph (4) above in respect of an amount, but</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/6/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/6/b" id="schedule-12-paragraph-8-6-b">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">subsequently an amount (“</Addition>
<Term id="term-the-relevant-credit">
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the relevant credit</Addition>
</Term>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">”) is recovered or credited in respect of the amount in respect of which the deduction was made, and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/6/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/6/c" id="schedule-12-paragraph-8-6-c">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">c</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the relevant credit would, on the suppositions in paragraphs (a) to (c) of sub-paragraph (4) above, be brought into account for tax purposes as a trading receipt for a period of account of the current lessor,</Addition>
</Text>
</P3para>
</P3>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the taxable rent for that period of account shall be increased by the amount of the relevant credit.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/7" id="schedule-12-paragraph-8-7">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710371"/>
7
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">In sub-paragraph (6) above, “</Addition>
<Term id="term-the-taxable-rent">
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the taxable rent</Addition>
</Term>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">”, in the case of a period of account of the current lessor, means the amount which would, apart from that sub-paragraph, be treated for tax purposes as rent from the lease—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/7/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/7/a" id="schedule-12-paragraph-8-7-a">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">which arises to him, and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/7/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/7/b" id="schedule-12-paragraph-8-7-b">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">if rent arising to him from the lease is chargeable to corporation tax under Schedule A, to which he is entitled,</Addition>
</Text>
</P3para>
</P3>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">in that period of account for the purpose of determining his liability to tax for the related chargeable period or periods.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/8/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/8" id="schedule-12-paragraph-8-8">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710451"/>
8
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">After the time when the conditions in paragraph 3 above become satisfied as respects any particular lessor, no claim under section 41 of the Taxes Act 1988 shall be made in respect of any amount which that lessor was entitled to receive in respect of rents from the lease of the asset.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/9/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/9" id="schedule-12-paragraph-8-9">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">
<CommentaryRef Ref="c14710461"/>
9
</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">Where—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/9/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/9/a" id="schedule-12-paragraph-8-9-a">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">before the time at which the conditions in paragraph 3 above become satisfied as respects any particular lessor, a claim under section 41 of the Taxes Act 1988 in respect of an amount which he was entitled to receive in respect of any rents from the lease of the asset has been made, and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/8/9/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/8/9/b" id="schedule-12-paragraph-8-9-b">
<Pnumber>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">the claim is to any extent allowed,</Addition>
</Text>
</P3para>
</P3>
<Text>
<Addition ChangeId="d29p22666" CommentaryRef="c14710361">no amount shall be deductible under sub-paragraph (4) above in respect of that amount so far as so allowed.</Addition>
</Text>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/relief-for-bad-debts-etc-cumulative-accountancy-rental-excess/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/relief-for-bad-debts-etc-cumulative-accountancy-rental-excess" NumberOfProvisions="1" RestrictEndDate="2005-04-07" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-relief-for-bad-debts-etc-cumulative-accountancy-rental-excess">
<Title> Relief for bad debts etc: cumulative accountancy rental excess</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9" RestrictEndDate="2005-04-07" RestrictStartDate="1997-03-19" id="schedule-12-paragraph-9">
<Pnumber>9</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/1" id="schedule-12-paragraph-9-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>If, in the case of the lease, for any period of account—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/1/a" id="schedule-12-paragraph-9-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the accountancy rental earnings exceed the normal rent,</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/1/b" id="schedule-12-paragraph-9-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a bad debt deduction falls to be made in respect of rent from the lease,</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/1/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/1/c" id="schedule-12-paragraph-9-1-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>the amount of the bad debt deduction exceeds the amount of the accountancy rental earnings, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/1/d/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/1/d" id="schedule-12-paragraph-9-1-d">
<Pnumber>d</Pnumber>
<P3para>
<Text>there is a cumulative accountancy rental excess,</Text>
</P3para>
</P3>
<Text>the cumulative accountancy rental excess for the period of account shall be reduced (but not below nil) by the amount by which the bad debt deduction exceeds the accountancy rental earnings.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/2" id="schedule-12-paragraph-9-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>If, in the case of the lease, for any period of account—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/2/a" id="schedule-12-paragraph-9-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the accountancy rental earnings do not exceed the normal rent,</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/2/b" id="schedule-12-paragraph-9-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a bad debt deduction falls to be made in respect of rent from the lease, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/2/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/2/c" id="schedule-12-paragraph-9-2-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>there is a cumulative accountancy rental excess for that period of account,</Text>
</P3para>
</P3>
<Text>sub-paragraph (3) below shall apply.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/3" id="schedule-12-paragraph-9-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>Where this sub-paragraph applies, the amount of the cumulative accountancy rental excess which may be set against the taxable rent for the period of account shall not exceed the amount (if any) by which the normal rent exceeds the bad debt deduction (and, if the normal rent does not exceed the bad debt deduction, shall be nil).</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/4" id="schedule-12-paragraph-9-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>If, in a case where sub-paragraph (3) above applies, the bad debt deduction exceeds the normal rent for the period of account, the cumulative accountancy rental excess for the period of account shall be reduced (but not below nil) by the amount by which the bad debt deduction exceeds the normal rent.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/5" id="schedule-12-paragraph-9-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>Where—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/5/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/5/a" id="schedule-12-paragraph-9-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the cumulative accountancy rental excess for any period of account of the current lessor has been reduced under sub-paragraph (1) or (4) above by reason of a bad debt deduction, but</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/5/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/5/b" id="schedule-12-paragraph-9-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>
in a subsequent period of account of his, an amount (“
<Term id="term-the-relevant-credit">the relevant credit</Term>
”) is recovered or credited in respect of the amount which constituted the bad debt deduction,
</Text>
</P3para>
</P3>
<Text>the cumulative accountancy rental excess (if any) for the period of account mentioned in paragraph (b) above shall, subject to sub-paragraph (6) below, be increased by the relevant credit.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/6" id="schedule-12-paragraph-9-6">
<Pnumber>6</Pnumber>
<P2para>
<Text>If, in a case falling within sub-paragraph (5) above,—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/6/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/6/a" id="schedule-12-paragraph-9-6-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the relevant credit, exceeds</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/6/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/6/b" id="schedule-12-paragraph-9-6-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the aggregate of the reductions falling within paragraph (a) of that sub-paragraph,</Text>
</P3para>
</P3>
<Text>the amount of the increase under that sub-paragraph shall not exceed that aggregate.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/9/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/9/7" id="schedule-12-paragraph-9-7">
<Pnumber>7</Pnumber>
<P2para>
<Text>In this paragraph—</Text>
<UnorderedList Decoration="none" Class="Definition">
<ListItem>
<Para>
<Text>
<Term id="term-bad-debt-deduction">bad debt deduction</Term>
”, in relation to a period of account, means the aggregate of any sums falling within sub-paragraph (i), (ii) or (iii) of section 74(1)(j) of the Taxes Act 1988 in respect of amounts in respect of rents from the lease of the asset which are deductible as expenses for that period, whether by virtue of paragraph 8(4) above or otherwise;
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Term id="term-taxable-rent">taxable rent</Term>
” has the same meaning as in paragraph 6 above.
</Text>
</Para>
</ListItem>
</UnorderedList>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/relief-for-bad-debts-etc-cumulative-normal-rental-excess/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/relief-for-bad-debts-etc-cumulative-normal-rental-excess" NumberOfProvisions="1" RestrictEndDate="2005-04-07" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-relief-for-bad-debts-etc-cumulative-normal-rental-excess">
<Title> Relief for bad debts etc: cumulative normal rental excess</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10" RestrictEndDate="2005-04-07" RestrictStartDate="1997-03-19" id="schedule-12-paragraph-10">
<Pnumber>10</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/1" id="schedule-12-paragraph-10-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>If, in the case of the lease, for any period of account—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/1/a" id="schedule-12-paragraph-10-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the accountancy rental earnings do not exceed the normal rent,</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/1/b" id="schedule-12-paragraph-10-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a bad debt deduction falls to be made in respect of rent from the lease,</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/1/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/1/c" id="schedule-12-paragraph-10-1-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>the amount of the bad debt deduction exceeds the amount of the normal rent, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/1/d/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/1/d" id="schedule-12-paragraph-10-1-d">
<Pnumber>d</Pnumber>
<P3para>
<Text>there is a cumulative normal rental excess,</Text>
</P3para>
</P3>
<Text>the cumulative normal rental excess for the period of account shall be reduced (but not below nil) by the amount by which the bad debt deduction exceeds the normal rent.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/2" id="schedule-12-paragraph-10-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>If, in the case of the lease, for any period of account—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/2/a" id="schedule-12-paragraph-10-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the accountancy rental earnings exceed the normal rent,</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/2/b" id="schedule-12-paragraph-10-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a bad debt deduction falls to be made in respect of rent from the lease, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/2/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/2/c" id="schedule-12-paragraph-10-2-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>there is a cumulative normal rental excess for that period of account,</Text>
</P3para>
</P3>
<Text>sub-paragraph (3) below shall apply.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/3" id="schedule-12-paragraph-10-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>Where this sub-paragraph applies, the amount of the cumulative normal rental excess which may be set against the taxable rent for the period of account shall not exceed the amount (if any) by which the accountancy rental earnings exceed the bad debt deduction (and, if the accountancy rental earnings do not exceed the bad debt deduction, shall be nil).</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/4" id="schedule-12-paragraph-10-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>If, in a case where sub-paragraph (3) above applies, the bad debt deduction exceeds the accountancy rental earnings for the period of account, the cumulative normal rental excess for the period of account shall be reduced (but not below nil) by the amount by which the bad debt deduction exceeds the accountancy rental earnings.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/5" id="schedule-12-paragraph-10-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>Where—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/5/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/5/a" id="schedule-12-paragraph-10-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the cumulative normal rental excess for any period of account of the current lessor has been reduced under sub-paragraph (1) or (4) above by reason of a bad debt deduction, but</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/5/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/5/b" id="schedule-12-paragraph-10-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>
in a subsequent period of account of his, an amount (“
<Term id="term-the-relevant-credit">the relevant credit</Term>
”) is recovered or credited in respect of the amount which constituted the bad debt deduction,
</Text>
</P3para>
</P3>
<Text>the cumulative normal rental excess (if any) for the period of account mentioned in paragraph (b) above shall, subject to sub-paragraph (6) below, be increased by the relevant credit.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/6" id="schedule-12-paragraph-10-6">
<Pnumber>6</Pnumber>
<P2para>
<Text>If, in a case falling within sub-paragraph (5) above,—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/6/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/6/a" id="schedule-12-paragraph-10-6-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the relevant credit, exceeds</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/6/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/6/b" id="schedule-12-paragraph-10-6-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the aggregate of the reductions falling within paragraph (a) of that sub-paragraph,</Text>
</P3para>
</P3>
<Text>the amount of the increase under that sub-paragraph shall not exceed that aggregate.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/10/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/10/7" id="schedule-12-paragraph-10-7">
<Pnumber>7</Pnumber>
<P2para>
<Text>In this paragraph—</Text>
<UnorderedList Decoration="none" Class="Definition">
<ListItem>
<Para>
<Text>
<Term id="term-bad-debt-deduction">bad debt deduction</Term>
”, in relation to a period of account, means the aggregate of any sums falling within sub-paragraph (i), (ii) or (iii) of section 74(1)(j) of the Taxes Act 1988 in respect of amounts in respect of rents from the lease of the asset which are deductible as expenses for that period, whether by virtue of paragraph 8(4) above or otherwise;
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Term id="term-taxable-rent">taxable rent</Term>
” has the same meaning as in paragraph 6 above.
</Text>
</Para>
</ListItem>
</UnorderedList>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/capital-allowances/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/capital-allowances" NumberOfProvisions="1" RestrictEndDate="2005-04-06" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-capital-allowances">
<Title> Capital allowances</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11" RestrictEndDate="2005-04-06" RestrictExtent="E+W+S+N.I." RestrictStartDate="2001-03-22" BlanketAmendment="true" id="schedule-12-paragraph-11">
<Pnumber>11</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/1" id="schedule-12-paragraph-11-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>This paragraph applies in any case where an occasion occurs on or after 26th November 1996 on which a major lump sum falls to be paid in the case of the lease of the asset.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/2" id="schedule-12-paragraph-11-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>
In this paragraph “
<Term id="term-the-relevant-occasion">the relevant occasion</Term>
” means the occasion mentioned in sub-paragraph (1) above.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/3" id="schedule-12-paragraph-11-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>If capital expenditure incurred by the current lessor in respect of the leased asset is or has been taken into account for the purposes of any allowance or charge under any of the following groups of provisions, that is to say—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/3/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/3/a" id="schedule-12-paragraph-11-3-a">
<Pnumber>
<Addition ChangeId="d29p23173" CommentaryRef="c14710521">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p23173" CommentaryRef="c14710521">Part 2 of the Capital Allowances Act (plant and machinery allowances),</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/3/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/3/b" id="schedule-12-paragraph-11-3-b">
<Pnumber>
<Addition ChangeId="d29p23173" CommentaryRef="c14710521">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p23173" CommentaryRef="c14710521">Part 5 of that Act (mineral extraction allowances), or</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/3/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/3/c" id="schedule-12-paragraph-11-3-c">
<Pnumber>
<Addition ChangeId="d29p23173" CommentaryRef="c14710521">c</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p23173" CommentaryRef="c14710521">Part 8 of that Act (patent allowances)</Addition>
</Text>
</P3para>
</P3>
<Text>
the group of provisions in question (“
<Term id="term-the-relevant-provisions">the relevant provisions</Term>
”) shall have effect as if the relevant occasion were an event by reason of which a disposal value is to be brought into account of an amount equal (subject to any applicable limiting provision) to the amount or value of the major lump sum.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/4" id="schedule-12-paragraph-11-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>
In this paragraph “
<Term id="term-limiting-provision">limiting provision</Term>
” means a provision to the effect that the disposal value of the asset in question is not to exceed an amount (“
<Term id="term-the-limit">the limit</Term>
”) described by reference to capital expenditure incurred in respect of the asset.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/5" id="schedule-12-paragraph-11-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>Where—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/5/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/5/a" id="schedule-12-paragraph-11-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>
by virtue of sub-paragraph (3) above, a disposal value (“
<Term id="term-the-relevant-disposal-value">the relevant disposal value</Term>
”) falls or has fallen to be brought into account by a person in respect of the leased asset for the purposes of the relevant provisions, and
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/5/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/5/b" id="schedule-12-paragraph-11-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a limiting provision has effect in the case of those provisions,</Text>
</P3para>
</P3>
<Text>sub-paragraph (6) below shall apply.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/6" id="schedule-12-paragraph-11-6">
<Pnumber>6</Pnumber>
<P2para>
<Text>Where this sub-paragraph applies, the limiting provision shall have effect (if or to the extent that it would not otherwise do so)—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/6/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/6/a" id="schedule-12-paragraph-11-6-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>in the case of the relevant disposal value, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/6/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/6/b" id="schedule-12-paragraph-11-6-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>in the case of any simultaneous or subsequent disposal value,</Text>
</P3para>
</P3>
<Text>as if, instead of any particular disposal value, it were the aggregate amount of all the disposal values brought into account for the purposes of the relevant provisions by the current lessor in respect of the leased asset which is not to exceed the limit.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/7" id="schedule-12-paragraph-11-7">
<Pnumber>7</Pnumber>
<P2para>
<Text>
In sub-paragraph (6) above “
<Term id="term-simultaneous-or-subsequent-disposal-value">simultaneous or subsequent disposal value</Term>
” means any disposal value which falls to be brought into account by the current lessor in respect of the leased asset by reason of any event occurring subsequent to, or at the same time as, the event by reason of which the relevant disposal value falls to be brought into account.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/8/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/8" id="schedule-12-paragraph-11-8">
<Pnumber>8</Pnumber>
<P2para>
<Text>
If any allowance is or has been given in respect of capital expenditure incurred by the current lessor in respect of the leased asset under any provision of
<Addition ChangeId="d29p23268" CommentaryRef="c14710531">the Capital Allowances Act</Addition>
other than those specified in sub-paragraph (3) above, an amount equal to the lesser of—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/8/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/8/a" id="schedule-12-paragraph-11-8-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the aggregate of the allowances so given (so far as not previously recovered or withdrawn),</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/8/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/8/b" id="schedule-12-paragraph-11-8-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the amount or value of the major lump sum,</Text>
</P3para>
</P3>
<Text>
shall, in relation to the current lessor, be treated as if it were a balancing charge to be made on him for the chargeable period
<CommentaryRef Ref="c14710541"/>
. . . in which falls the relevant occasion.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/9/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/9" id="schedule-12-paragraph-11-9">
<Pnumber>9</Pnumber>
<P2para>
<Text>
If there is or has been allowed to the current lessor in respect of expenditure incurred in connection with the leased asset any deduction by virtue of
<Addition ChangeId="d29p23294" CommentaryRef="c14710551">
section 40B(1) or 42 of the Finance (
<Abbreviation Expansion="Number">No.</Abbreviation>
2) Act 1992 (expenditure in connection with films
<Abbreviation Expansion="et cetera" xml:lang="la">etc.</Abbreviation>
),
</Addition>
sub-paragraph (10) below shall apply.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/10/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/10" id="schedule-12-paragraph-11-10">
<Pnumber>10</Pnumber>
<P2para>
<Text>Where this sub-paragraph applies, the current lessor shall be treated as if receipts of a revenue nature of an amount equal to the amount (if any) by which—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/10/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/10/a" id="schedule-12-paragraph-11-10-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount or value of the major lump sum, exceeds</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/10/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/10/b" id="schedule-12-paragraph-11-10-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>
the amount or value of so much of the major lump sum as is treated as receipts of a revenue nature
<Addition ChangeId="d29p23316" CommentaryRef="c14710561">under section 40A(2) of the Finance (No. 2) Act 1992</Addition>
,
</Text>
</P3para>
</P3>
<Text>arose to him from the trade or business in question on the relevant occasion.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/11/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/11" id="schedule-12-paragraph-11-11">
<Pnumber>11</Pnumber>
<P2para>
<Text>If there is or has been allowed to the current lessor in respect of capital expenditure incurred in connection with the leased asset any deduction by virtue of—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/11/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/11/a" id="schedule-12-paragraph-11-11-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>section 91 of the Taxes Act 1988 (cemeteries etc), or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/11/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/11/b" id="schedule-12-paragraph-11-11-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>section 91A or 91B of that Act (restoration and preparation expenditure in relation to a waste disposal site),</Text>
</P3para>
</P3>
<Text>sub-paragraph (12) below shall apply.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/12/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/12" id="schedule-12-paragraph-11-12">
<Pnumber>12</Pnumber>
<P2para>
<Text>Where this sub-paragraph applies, the current lessor shall be treated as if trading receipts of an amount equal to the lesser of—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/12/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/12/a" id="schedule-12-paragraph-11-12-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount or value of the major lump sum,</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/12/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/12/b" id="schedule-12-paragraph-11-12-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the deductions previously allowed,</Text>
</P3para>
</P3>
<Text>arose to him from the trade in question on the relevant occasion.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/13/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/13" id="schedule-12-paragraph-11-13">
<Pnumber>13</Pnumber>
<P2para>
<Text>
If, in a case where this paragraph applies, allowances are or have been made to a person (“
<Term id="term-the-contributor">the contributor</Term>
”) by virtue of
<Addition ChangeId="d29p23372" CommentaryRef="c14710571">sections 537 to 542 of the Capital Allowances Act</Addition>
(allowances in respect of contributions to capital expenditure) in respect of his contribution of a capital sum to expenditure on the provision of the leased asset, the foregoing provisions of this paragraph shall have effect in relation to the contributor and allowances by virtue of that section in respect of the contribution as they have effect in relation to the current lessor and allowances in respect of capital expenditure incurred by him in respect of the leased asset.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/14/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/14" id="schedule-12-paragraph-11-14">
<Pnumber>
<Addition ChangeId="d29p23376" CommentaryRef="c14710581">14</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p23376" CommentaryRef="c14710581">In sub-paragraph (8) above—</Addition>
</Text>
<UnorderedList Decoration="none" Class="Definition">
<ListItem>
<Para>
<Text>
<Addition ChangeId="d29p23376" CommentaryRef="c14710581"></Addition>
<Term id="term-the-capital-allowances-act">
<Addition ChangeId="d29p23376" CommentaryRef="c14710581">the Capital Allowances Act</Addition>
</Term>
<Addition ChangeId="d29p23376" CommentaryRef="c14710581">” includes enactments which under the Taxes Act 1988 are to be treated as contained in the Capital Allowances Act;</Addition>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Addition ChangeId="d29p23376" CommentaryRef="c14710581"></Addition>
<Term id="term-chargeable-period">
<Addition ChangeId="d29p23376" CommentaryRef="c14710581">chargeable period</Addition>
</Term>
<Addition ChangeId="d29p23376" CommentaryRef="c14710581">” has the meaning given by section 6 of the Capital Allowances Act.</Addition>
</Text>
</Para>
</ListItem>
</UnorderedList>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/11/15/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/11/15" id="schedule-12-paragraph-11-15">
<Pnumber>
<CommentaryRef Ref="c14710591"/>
15
</Pnumber>
<P2para>
<Text>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</Text>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/chargeable-gains/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/chargeable-gains" NumberOfProvisions="1" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-chargeable-gains">
<Title> Chargeable gains</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-paragraph-12">
<Pnumber>12</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/1" id="schedule-12-paragraph-12-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>If, in the case of the lease,—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/1/a" id="schedule-12-paragraph-12-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the current lessor or a person connected with him disposes of—</Text>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/1/a/i/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/1/a/i" id="schedule-12-paragraph-12-1-a-i">
<Pnumber>i</Pnumber>
<P4para>
<Text>the lessor’s interest under the lease, or</Text>
</P4para>
</P4>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/1/a/ii/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/1/a/ii" id="schedule-12-paragraph-12-1-a-ii">
<Pnumber>ii</Pnumber>
<P4para>
<Text>the leased asset, or</Text>
</P4para>
</P4>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/1/a/iii/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/1/a/iii" id="schedule-12-paragraph-12-1-a-iii">
<Pnumber>iii</Pnumber>
<P4para>
<Text>an asset representing the leased asset, and</Text>
</P4para>
</P4>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/1/b" id="schedule-12-paragraph-12-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>there is, for the period of account of the current lessor in which the disposal takes place, any cumulative accountancy rental excess,</Text>
</P3para>
</P3>
<Text>
then, in determining for the purposes of the
<CommentaryRef Ref="c14710601"/>
Taxation of Chargeable Gains Act 1992 the amount of any gain accruing to the person making the disposal, the consideration for the disposal shall be treated as reduced (but not below nil) by setting against it the cumulative accountancy rental excess.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/2" id="schedule-12-paragraph-12-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>
If the disposal mentioned in sub-paragraph (1) above is, for the purposes of the
<CommentaryRef Ref="c14710611"/>
Taxation of Chargeable Gains Act 1992, a part-disposal of an asset—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/2/a" id="schedule-12-paragraph-12-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the cumulative accountancy rental excess mentioned in sub-paragraph (1) above shall be apportioned between—</Text>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/2/a/i/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/2/a/i" id="schedule-12-paragraph-12-2-a-i">
<Pnumber>i</Pnumber>
<P4para>
<Text>the property disposed of, and</Text>
</P4para>
</P4>
<P4 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/2/a/ii/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/2/a/ii" id="schedule-12-paragraph-12-2-a-ii">
<Pnumber>ii</Pnumber>
<P4para>
<Text>the property which remains undisposed of,</Text>
</P4para>
</P4>
<Text>in the proportions in which the sums which under paragraph (a) or (b) of section 38(1) of that Act are attributable to the asset fall to be apportioned under section 42 of that Act; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/2/b" id="schedule-12-paragraph-12-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>only that portion of the cumulative accountancy rental excess which is so apportioned to the property disposed of shall be set against the consideration for the part-disposal in accordance with sub-paragraph (1) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/3" id="schedule-12-paragraph-12-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>Sub-paragraph (1) above is without prejudice to section 37 of the Taxation of Chargeable Gains Act 1992 (deduction for money or money’s worth charged to income tax etc) except as provided in sub-paragraph (4) below.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/4" id="schedule-12-paragraph-12-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>Section 37 of that Act shall not apply if or to the extent that any money or money’s worth which, apart from this sub-paragraph, would be excluded by virtue of that section from the consideration for a disposal is represented by any cumulative accountancy rental excess which in accordance with sub-paragraph (1) above—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/4/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/4/a" id="schedule-12-paragraph-12-4-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>falls to be set against the consideration for the disposal; or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/4/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/4/b" id="schedule-12-paragraph-12-4-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>has fallen to be set against the consideration for a previous disposal made by the person making the disposal in question or a person connected with him.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/5" id="schedule-12-paragraph-12-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>Where the current lessor or a person connected with him disposes of—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/5/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/5/a" id="schedule-12-paragraph-12-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the lessor’s interest under the lease, or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/5/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/5/b" id="schedule-12-paragraph-12-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the leased asset, or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/5/c/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/5/c" id="schedule-12-paragraph-12-5-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>an asset representing the leased asset,</Text>
</P3para>
</P3>
<Text>this Schedule shall have effect as if a period of account of the current lessor ended, and another period of account of his began, immediately before the disposal.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/6" id="schedule-12-paragraph-12-6">
<Pnumber>6</Pnumber>
<P2para>
<Text>If two or more disposals falling within sub-paragraph (1) above are made at the same time—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/6/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/6/a" id="schedule-12-paragraph-12-6-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the cumulative accountancy rental excess mentioned in sub-paragraph (1) above shall, subject to sub-paragraph (2) above, be apportioned between them in such proportions as are just and reasonable; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/6/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/6/b" id="schedule-12-paragraph-12-6-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>sub-paragraph (5) above shall have effect in relation to those disposals as if they together constituted a single disposal.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/12/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/12/7" id="schedule-12-paragraph-12-7">
<Pnumber>7</Pnumber>
<P2para>
<Text>
In this paragraph “
<Term id="term-dispose">dispose</Term>
” and “
<Term id="term-disposal">disposal</Term>
” shall be construed in accordance with the
<CommentaryRef Ref="c14710621"/>
Taxation of Chargeable Gains Act 1992.
</Text>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/existing-schemes-where-this-part-does-not-at-first-apply/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/existing-schemes-where-this-part-does-not-at-first-apply" NumberOfProvisions="1" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-existing-schemes-where-this-part-does-not-at-first-apply">
<Title> Existing schemes where this Part does not at first apply</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13" RestrictEndDate="2010-04-01" RestrictExtent="E+W+S+N.I." RestrictStartDate="1998-07-31" id="schedule-12-paragraph-13">
<Pnumber>13</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/1/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/1" id="schedule-12-paragraph-13-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>This paragraph applies in any case where—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/1/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/1/a" id="schedule-12-paragraph-13-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the lease of the asset forms part of an existing scheme, but</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/1/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/1/b" id="schedule-12-paragraph-13-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the conditions in paragraph 3 above become satisfied after 26th November 1996.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/2/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/2" id="schedule-12-paragraph-13-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>This Schedule shall have effect as if a period of account of the current lessor ended, and another period of account of his began—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/2/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/2/a" id="schedule-12-paragraph-13-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>immediately before the time at which the conditions in paragraph 3 above become satisfied as mentioned in sub-paragraph (1)(b) above; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/2/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/2/b" id="schedule-12-paragraph-13-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>immediately after the time at which those conditions become so satisfied.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/3/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/3" id="schedule-12-paragraph-13-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>If, on the assumption that this Part of this Schedule (other than this paragraph) had applied in the case of the lease at all times on or after 26th November 1996, there would be an amount of cumulative accountancy rental excess for the period of account of the current lessor in which the conditions in paragraph 3 above become satisfied, then—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/3/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/3/a" id="schedule-12-paragraph-13-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>that amount shall be the cumulative accountancy rental excess for that period of account; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/3/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/3/b" id="schedule-12-paragraph-13-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the current lessor shall be treated for tax purposes as if, in the immediately preceding period of account, he had been entitled to, and there had arisen to him, rent from the lease of an amount equal to that cumulative accountancy rental excess.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/4/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/4" id="schedule-12-paragraph-13-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>If, on the assumption that this Part of this Schedule (other than this paragraph) had applied in the case of the lease at all times on or after 26th November 1996, there would be an amount of cumulative normal rental excess for the period of account of the current lessor in which the conditions in paragraph 3 above become satisfied, that amount shall be the cumulative normal rental excess for that period of account.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/5/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/5" id="schedule-12-paragraph-13-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>The amount of rent mentioned in sub-paragraph (3)(b) above—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/5/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/5/a" id="schedule-12-paragraph-13-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>is in addition to any other rent from the lease for the period of account there mentioned; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/5/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/5/b" id="schedule-12-paragraph-13-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>shall be left out of account for the purposes of paragraph 5 above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/6/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/6" id="schedule-12-paragraph-13-6">
<Pnumber>6</Pnumber>
<P2para>
<Text>Where a person is treated under sub-paragraph (3)(b) above as if he had in a period of account been entitled to, and there had arisen to him, any rent, the rent shall be treated for tax purposes as if it had accrued, and he had become entitled to it, immediately before the end of that period of account.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/7/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/7" id="schedule-12-paragraph-13-7">
<Pnumber>
<Addition ChangeId="d29p23664" CommentaryRef="c14710631">7</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d29p23664" CommentaryRef="c14710631">In determining for the purposes of this paragraph the amount which would, on the assumption in sub-paragraph (3) or (4) above, be the amount of—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/7/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/7/a" id="schedule-12-paragraph-13-7-a">
<Pnumber>
<Addition ChangeId="d29p23664" CommentaryRef="c14710631">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p23664" CommentaryRef="c14710631">the cumulative accountancy rental excess, or</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/13/7/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/7/b" id="schedule-12-paragraph-13-7-b">
<Pnumber>
<Addition ChangeId="d29p23664" CommentaryRef="c14710631">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d29p23664" CommentaryRef="c14710631">the cumulative normal rental excess,</Addition>
</Text>
</P3para>
</P3>
<Text>
<Addition ChangeId="d29p23664" CommentaryRef="c14710631">for the period of account of the current lessor in which the conditions in paragraph 3 above become satisfied, any amount of relief given for a period of account on a claim under section 41 of the Taxes Act 1988 shall be treated as if it had instead been given under paragraph 8(4) above for that period of account.</Addition>
</Text>
</P2para>
</P2>
</P1para>
</P1>
</Pblock>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/part/I/crossheading/new-schemes-where-this-part-begins-to-apply-after-part-ii-has-applied/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/part/I/crossheading/new-schemes-where-this-part-begins-to-apply-after-part-ii-has-applied" NumberOfProvisions="1" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-part-I-crossheading-new-schemes-where-this-part-begins-to-apply-after-part-ii-has-applied">
<Title> New schemes where this Part begins to apply after Part II has applied</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/14/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/14" RestrictEndDate="2010-04-01" RestrictStartDate="1997-03-19" id="schedule-12-paragraph-14">
<Pnumber>14</Pnumber>
<P1para>
<Text>If—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/14/a/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/14/a" id="schedule-12-paragraph-14-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the conditions in paragraph 3 above become satisfied in the case of the lease of the asset, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1997/16/schedule/12/paragraph/14/b/2002-07-24" IdURI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/14/b" id="schedule-12-paragraph-14-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>immediately before those conditions became so satisfied, Part II of this Schedule applied in the case of the lease,</Text>
</P3para>
</P3>
<Text>then, in determining the cumulative accountancy rental excess or the cumulative normal rental excess for any period of account ending after those conditions become satisfied, this Schedule shall have effect as if this Part of this Schedule had applied in relation to the lease at any time when Part II of this Schedule applied in relation to it.</Text>
</P1para>
</P1>
</Pblock>
</Part>
</ScheduleBody>
</Schedule>
</Schedules>
</Primary>
<Commentaries>
<Commentary id="c16241291" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00698" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/1/c" SectionRef="schedule-12-paragraph-1-1-c">Sch. 12 para. 1(1)(c)</CitationSubRef>
repealed (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00699" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00700" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/141" CitationRef="c00699" SectionRef="section-141">s. 141</CitationSubRef>
,
<CitationSubRef id="c00701" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/schedule/40/part/3/16" CitationRef="c00699" SectionRef="schedule-40-part-3-16" Operative="true">Sch. 40 Pt. 3(16)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c16240261" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00702" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/1/c" SectionRef="schedule-12-paragraph-1-1-c">Sch. 12 para. 1(1)(c)</CitationSubRef>
substituted (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00703" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00704" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/103/4/e" CitationRef="c00703" SectionRef="section-103-4-e" Operative="true">s. 103(4)(e)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c16241381" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00705" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/1/2/a" SectionRef="schedule-12-paragraph-1-2-a">Sch. 12 para. 1(2)(a)</CitationSubRef>
substituted (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00706" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00707" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/103/4/e" CitationRef="c00706" SectionRef="section-103-4-e" Operative="true">s. 103(4)(e)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c16319651" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00708" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/1/2" SectionRef="schedule-12-paragraph-3-1-2">Sch. 12 para. 3(1)(2)</CitationSubRef>
substituted (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00709" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00710" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/103/4/e" CitationRef="c00709" SectionRef="section-103-4-e" Operative="true">s. 103(4)(e)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c16785461" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00711" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/1/2" SectionRef="schedule-12-paragraph-3-1-2">Sch. 12 para. 3(1)(2)</CitationSubRef>
substituted (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00712" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00713" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/103/4/e" CitationRef="c00712" SectionRef="section-103-4-e" Operative="true">s. 103(4)(e)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c16785491" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00714" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/1/2" SectionRef="schedule-12-paragraph-3-1-2">Sch. 12 para. 3(1)(2)</CitationSubRef>
substituted (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00715" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00716" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/103/4/e" CitationRef="c00715" SectionRef="section-103-4-e" Operative="true">s. 103(4)(e)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710311" Type="F">
<Para>
<Text>
<CitationSubRef id="c00717" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/6" SectionRef="schedule-12-paragraph-3-6">Sch. 12 para. 3(6)</CitationSubRef>
repealed (31.7.1998 with effect in accordance with
<CitationSubRef id="c00718" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/2/3" CitationRef="c00719" SectionRef="section-38-2-3">s. 38(2)(3)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00719" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00720" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/165" CitationRef="c00719" SectionRef="section-165">s. 165</CitationSubRef>
,
<CitationSubRef id="c00721" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/27/part/III/4" Operative="true" CitationRef="c00719" SectionRef="schedule-27-part-III-4">Sch. 27 Pt. III(4)</CitationSubRef>
note
</Text>
</Para>
</Commentary>
<Commentary id="c14710321" Type="C">
<Para>
<Text>
<CitationSubRef id="c00722" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/3/6" SectionRef="schedule-12-paragraph-3-6">Sch. 12 para. 3(6)</CitationSubRef>
excluded (31.7.1998 in relation to periods of account beginning on or after 1.4.1998) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00723" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00724" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/1" CitationRef="c00723" SectionRef="section-38-1">s. 38(1)</CitationSubRef>
,
<CitationSubRef id="c00725" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/5/paragraph/74/1/2" Operative="true" CitationRef="c00723" SectionRef="schedule-5-paragraph-74-1-2">Sch. 5 para. 74(1)(2)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c16323961" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00726" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/5" SectionRef="schedule-12-paragraph-4-5">Sch. 12 para. 4(5)</CitationSubRef>
repealed (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00727" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00728" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/141" CitationRef="c00727" SectionRef="section-141">s. 141</CitationSubRef>
,
<CitationSubRef id="c00729" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/schedule/40/part/3/16" CitationRef="c00727" SectionRef="schedule-40-part-3-16" Operative="true">Sch. 40 Pt. 3(16)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c16323901" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00730" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/4/5" SectionRef="schedule-12-paragraph-4-5">Sch. 12 para. 4(5)</CitationSubRef>
substituted (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00731" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00732" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/103/4/e" CitationRef="c00731" SectionRef="section-103-4-e" Operative="true">s. 103(4)(e)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c16324111" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c00733" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/1/a" SectionRef="schedule-12-paragraph-6-1-a">Sch. 12 para. 6(1)(a)</CitationSubRef>
substituted (24.7.2002) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2002/23" id="c00734" Year="2002" Class="UnitedKingdomPublicGeneralAct" Number="23" Title="Finance Act 2002">Finance Act 2002 (c. 23)</Citation>
,
<CitationSubRef id="c00735" URI="http://www.legislation.gov.uk/id/ukpga/2002/23/section/103/4/e" CitationRef="c00734" SectionRef="section-103-4-e" Operative="true">s. 103(4)(e)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710331" Type="F">
<Para>
<Text>
<CitationSubRef id="c00736" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/9/b" SectionRef="schedule-12-paragraph-6-9-b">Sch. 12 para. 6(9)(b)</CitationSubRef>
repealed (31.7.1998 with effect in accordance with
<CitationSubRef id="c00737" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/2/3" CitationRef="c00738" SectionRef="section-38-2-3">s. 38(2)(3)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00738" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00739" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/165" CitationRef="c00738" SectionRef="section-165">s. 165</CitationSubRef>
,
<CitationSubRef id="c00740" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/27/part/III/4" Operative="true" CitationRef="c00738" SectionRef="schedule-27-part-III-4">Sch. 27 Pt. III(4)</CitationSubRef>
Note
</Text>
</Para>
</Commentary>
<Commentary id="c14710341" Type="C">
<Para>
<Text>
<CitationSubRef id="c00741" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/6/9/b" SectionRef="schedule-12-paragraph-6-9-b">Sch. 12 para. 6(9)(b)</CitationSubRef>
excluded (31.7.1998 in relation to periods of account beginning on or after 1.4.1998) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00742" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00743" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/1" CitationRef="c00742" SectionRef="section-38-1">s. 38(1)</CitationSubRef>
,
<CitationSubRef id="c00744" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/5/paragraph/74/1/2" Operative="true" CitationRef="c00742" SectionRef="schedule-5-paragraph-74-1-2">Sch. 5 para. 74(1)(2)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710351" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1992/12" id="c00745" Year="1992" Class="UnitedKingdomPublicGeneralAct" Number="12">1992 c. 12</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c14710361" Type="F">
<Para>
<Text>
Sch. 12 para. 8 repealed (31.7.1998 with effect in accordance with
<CitationSubRef id="c00747" CitationRef="c00748" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/2/3" SectionRef="section-38-2-3">s. 38(2)(3)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00748" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00749" CitationRef="c00748" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/165" SectionRef="section-165">s. 165</CitationSubRef>
,
<CitationSubRef id="c00750" CitationRef="c00748" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/27/part/III/4" Operative="true" SectionRef="schedule-27-part-III-4">Sch. 27 Pt. III(4)</CitationSubRef>
note
</Text>
</Para>
</Commentary>
<Commentary id="c14710371" Type="C">
<Para>
<Text>
Sch. 12 para. 8(1)-(7) excluded (31.7.1998 in relation to periods of account beginning on or after 1.4.1998) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00752" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00753" CitationRef="c00752" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/1" SectionRef="section-38-1">s. 38(1)</CitationSubRef>
,
<CitationSubRef id="c00754" CitationRef="c00752" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/5/paragraph/74/1/2" Operative="true" SectionRef="schedule-5-paragraph-74-1-2">Sch. 5 para. 74(1)(2)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710411" Type="F">
<Para>
<Text>
Words in Sch. 12 para. 8(4)(a) substituted (31.7.1998) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00756" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00757" CitationRef="c00756" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/46/3/a" SectionRef="section-46-3-a">s. 46(3)(a)</CitationSubRef>
,
<CitationSubRef id="c00758" CitationRef="c00756" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/7/paragraph/12" Operative="true" SectionRef="schedule-7-paragraph-12">Sch. 7 para. 12</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710451" Type="C">
<Para>
<Text>
Sch. 12 para. 8(8) excluded (31.7.1998) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00760" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00761" CitationRef="c00760" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/1" SectionRef="section-38-1">s. 38(1)</CitationSubRef>
,
<CitationSubRef id="c00762" CitationRef="c00760" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/5/paragraph/74/1/2" Operative="true" SectionRef="schedule-5-paragraph-74-1-2">Sch. 5 para. 74(1)(2)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710461" Type="C">
<Para>
<Text>
Sch. 12 para. 8(9) excluded (31.7.1998) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00764" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00765" CitationRef="c00764" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/1/schedule/5/paragraph/74/1/2" Operative="true" SectionRef="section-38-1-schedule-5-paragraph-74-1-2">s. 38(1) Sch. 5 para. 74(1)(2)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710521" Type="F">
<Para>
<Text>
Sch. 12 para. 11(3)(a)-(c) substituted (22.3.2001 with effect as mentioned in
<CitationSubRef id="c00767" CitationRef="c00768" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/579/1" SectionRef="section-579-1">s. 579(1)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00768" Year="2001" Class="UnitedKingdomPublicGeneralAct" Number="2">2001 c. 2</Citation>
,
<CitationSubRef id="c00769" CitationRef="c00768" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/578" SectionRef="section-578">s. 578</CitationSubRef>
,
<CitationSubRef id="c00770" CitationRef="c00768" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/2/paragraph/98/1" Operative="true" SectionRef="schedule-2-paragraph-98-1">Sch. 2 para. 98(1)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710531" Type="F">
<Para>
<Text>
Words in Sch. 12 para. 11(8) substituted (22.3.2001 with effect as mentioned in
<CitationSubRef id="c00772" CitationRef="c00773" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/579/1" SectionRef="section-579-1">s. 579(1)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00773" Year="2001" Class="UnitedKingdomPublicGeneralAct" Number="2">2001 c. 2</Citation>
,
<CitationSubRef id="c00774" CitationRef="c00773" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/578" SectionRef="section-578">s. 578</CitationSubRef>
,
<CitationSubRef id="c00775" CitationRef="c00773" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/2/paragraph/98/2" Operative="true" SectionRef="schedule-2-paragraph-98-2">Sch. 2 para. 98(2)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710541" Type="F">
<Para>
<Text>
Words in Sch. 12 para. 11(8) repealed (22.3.2001 with effect as mentioned in
<CitationSubRef id="c00777" CitationRef="c00778" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/579/1" SectionRef="section-579-1">s. 579(1)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00778" Year="2001" Class="UnitedKingdomPublicGeneralAct" Number="2">2001 c. 2</Citation>
,
<CitationSubRef id="c00779" CitationRef="c00778" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/578" SectionRef="section-578">ss. 578</CitationSubRef>
,
<CitationSubRef id="c00780" CitationRef="c00778" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/580" SectionRef="section-580">580</CitationSubRef>
,
<CitationSubRef id="c00781" CitationRef="c00778" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/2/paragraph/98/2" SectionRef="schedule-2-paragraph-98-2">Sch. 2 para. 98(2)</CitationSubRef>
,
<CitationSubRef id="c00782" CitationRef="c00778" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/4" Operative="true" SectionRef="schedule-4">Sch. 4</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710551" Type="F">
<Para>
<Text>
Words in Sch. 12 para. 11(9) substituted (22.3.2001 with effect as mentioned in
<CitationSubRef id="c00784" CitationRef="c00785" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/579/1" SectionRef="section-579-1">s. 579(1)</CitationSubRef>
of the amending Act) for Sch. 12 para. 11(9)(a)(b) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00785" Year="2001" Class="UnitedKingdomPublicGeneralAct" Number="2">2001 c. 2</Citation>
,
<CitationSubRef id="c00786" CitationRef="c00785" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/578" SectionRef="section-578">s. 578</CitationSubRef>
,
<CitationSubRef id="c00787" CitationRef="c00785" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/2/paragraph/98/3" Operative="true" SectionRef="schedule-2-paragraph-98-3">Sch. 2 para. 98(3)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710561" Type="F">
<Para>
<Text>
Words in Sch. 12 para. 11(10)(b) substituted (22.3.2001 with effect as mentioned in
<CitationSubRef id="c00789" CitationRef="c00790" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/579/1" SectionRef="section-579-1">s. 579(1)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00790" Year="2001" Class="UnitedKingdomPublicGeneralAct" Number="2">2001 c. 2</Citation>
,
<CitationSubRef id="c00791" CitationRef="c00790" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/578" SectionRef="section-578">s. 578</CitationSubRef>
,
<CitationSubRef id="c00792" CitationRef="c00790" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/2/paragraph/98/4" Operative="true" SectionRef="schedule-2-paragraph-98-4">Sch. 2 para. 98(4)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710571" Type="F">
<Para>
<Text>
Words in Sch. 12 para. 11(13) substituted (22.3.2001 with effect as mentioned in
<CitationSubRef id="c00794" CitationRef="c00795" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/579/1" SectionRef="section-579-1">s. 579(1)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00795" Year="2001" Class="UnitedKingdomPublicGeneralAct" Number="2">2001 c. 2</Citation>
,
<CitationSubRef id="c00796" CitationRef="c00795" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/578" SectionRef="section-578">s. 578</CitationSubRef>
,
<CitationSubRef id="c00797" CitationRef="c00795" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/2/paragraph/98/5" Operative="true" SectionRef="schedule-2-paragraph-98-5">Sch. 2 para. 98(5)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710581" Type="F">
<Para>
<Text>
Sch. 12 para. 11(14) substituted (22.3.2001 with effect as mentioned in
<CitationSubRef id="c00799" CitationRef="c00800" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/579/1" SectionRef="section-579-1">s. 579(1)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00800" Year="2001" Class="UnitedKingdomPublicGeneralAct" Number="2">2001 c. 2</Citation>
,
<CitationSubRef id="c00801" CitationRef="c00800" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/578" SectionRef="section-578">s. 578</CitationSubRef>
,
<CitationSubRef id="c00802" CitationRef="c00800" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/2/paragraph/98/6" Operative="true" SectionRef="schedule-2-paragraph-98-6">Sch. 2 para. 98(6)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710591" Type="F">
<Para>
<Text>
Sch. 12 para. 11(15) repealed (22.3.2001 with effect as mentioned in
<CitationSubRef id="c00804" CitationRef="c00805" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/579/1" SectionRef="section-579-1">s. 579(1)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00805" Year="2001" Class="UnitedKingdomPublicGeneralAct" Number="2">2001 c. 2</Citation>
,
<CitationSubRef id="c00806" CitationRef="c00805" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/578" SectionRef="section-578">ss. 578</CitationSubRef>
,
<CitationSubRef id="c00807" CitationRef="c00805" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/580" SectionRef="section-580">580</CitationSubRef>
,
<CitationSubRef id="c00808" CitationRef="c00805" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/2/paragraph/98/7" SectionRef="schedule-2-paragraph-98-7">Sch. 2 para. 98(7)</CitationSubRef>
,
<CitationSubRef id="c00809" CitationRef="c00805" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/schedule/4" Operative="true" SectionRef="schedule-4">Sch. 4</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c14710601" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1992/12" id="c00810" Year="1992" Class="UnitedKingdomPublicGeneralAct" Number="12">1992 c. 12</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c14710611" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1992/12" id="c00811" Year="1992" Class="UnitedKingdomPublicGeneralAct" Number="12">1992 c. 12</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c14710621" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1992/12" id="c00812" Year="1992" Class="UnitedKingdomPublicGeneralAct" Number="12">1992 c. 12</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary id="c14710631" Type="F">
<Para>
<Text>
<CitationSubRef id="c00813" URI="http://www.legislation.gov.uk/id/ukpga/1997/16/schedule/12/paragraph/13/7" SectionRef="schedule-12-paragraph-13-7">Sch. 12 para. 13(7)</CitationSubRef>
repealed (31.7.1998 with effect in accordance with
<CitationSubRef id="c00814" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/38/2/3" CitationRef="c00815" SectionRef="section-38-2-3">s. 38(2)(3)</CitationSubRef>
of the amending Act) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1998/36" id="c00815" Year="1998" Class="UnitedKingdomPublicGeneralAct" Number="36">1998 c. 36</Citation>
,
<CitationSubRef id="c00816" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/section/165" CitationRef="c00815" SectionRef="section-165">s. 165</CitationSubRef>
,
<CitationSubRef id="c00817" URI="http://www.legislation.gov.uk/id/ukpga/1998/36/schedule/27/part/III/4" Operative="true" CitationRef="c00815" SectionRef="schedule-27-part-III-4">Sch. 27 Pt. III(4)</CitationSubRef>
note
</Text>
</Para>
</Commentary>
</Commentaries>
</Legislation>