Section 614BD | Provisions supplementing section 614BC

(1)In section 614BC—

“the relevant tax year”, in relation to a major lump sum, means—

(a)the tax year which is related to the period of account of the lessor (“L”) in which the major lump sum is or may be payable in accordance with the leasing arrangements, or

(b)if there are two or more such tax years, the latest of them, and

“the relevant time” means the time as at which it must be determined for the purposes of section 614BB(1) or (3) whether the conditions in section 614BC are or, as the case may be, were met.

(2)For the meaning of a tax year being related to a period of account, see section 614DB(4).

(3)Subsection (4) applies for determining the normal rent for a period of account for the purpose of determining whether condition D in section 614BC is met as respects L unless subsection (5) applies.

(4)Rent that falls to be brought into account for income tax purposes as it falls due is treated—

(a)as accruing evenly throughout the period to which, in accordance with the terms of the lease, each payment falling due relates, and

(b)as falling due as it so accrues.

(5)This subsection applies if any such payment as is mentioned in subsection (4)(a) falls due more than 12 months after the time at which any of the rent to which that payment relates is treated as accruing under subsection (4)(a).