[F1269ZXIncrease of deductions allowance [F2in connection with onerous or impaired leases] U.K.
(1)This section applies if—
(a)a [F3relevant credit] is brought into account in calculating a company's specified profits for an accounting period, and
(b)the amount of the company's specified profits for the accounting period is greater than nil.
[F4(1A)In this section “relevant credit” means a relevant reversal credit, a relevant remeasurement credit or a relevant variable lease payment (see sections 269ZY and 269ZYZA).]
(2)For the purposes of this section a company's “specified profits” for an accounting period are the sum of—
(a)the company's total profits for the accounting period, calculated with the modifications set out in section 269ZF(4), and
(b)any I-E profit of the company for the accounting period.
(3)The company's deductions allowance for the accounting period (as determined in accordance with section 269ZR or 269ZW) is to be treated (for all purposes) as increased by—
(a)the amount of the [F5relevant credit (or, if there is more than one, the sum of the relevant credits)], or
(b)if lower, the amount of the specified profits.]
Textual Amendments
F1Pt. 7ZA inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 16
F2Words in s. 269ZX heading substituted (with effect in accordance with s. 30(17)-(19) of the amending Act) by Finance Act 2022 (c. 3), s. 30(3)
F3Words in s. 269ZX(1)(a) substituted (with effect in accordance with s. 30(17)-(19) of the amending Act) by Finance Act 2022 (c. 3), s. 30(4)
F4S. 269ZX(1A) inserted (with effect in accordance with s. 30(17)-(19) of the amending Act) by Finance Act 2022 (c. 3), s. 30(5)
F5Words in s. 269ZX(3)(a) substituted (with effect in accordance with s. 30(17)-(19) of the amending Act) by Finance Act 2022 (c. 3), s. 30(6)