BLM72065 | ’Income-into-capital’ schemes and back loaded leases: Relief for set-offs against rentals: cumulative accountancy rental excess: example 3

Example

Example 1 in BLM72030 shows the cumulative accountancy rental excess brought forward and set off during the first 6 years of a lease. If in Example 1 the leased asset was sold by the lessor for £25,000 at the end of period 4 the cumulative accountancy rental excess (‘CARE’) of £1400 brought forward at the beginning of that period is first reduced by the £200 set against normal rent for the period (see below) and only the balance of £1200 set off in the capital gains computation.