Section 614BG | Reduction of taxable rent by cumulative rental excesses: introduction

(1)This section and sections 614BH to 614BK provide for reductions of the taxable rent of a current lessor (“L”) under a lease to which this Chapter applies.

(2)In this section and sections 614BH to 614BK “taxable rent”, in relation to a period of account of L, means the amount that would, apart from those sections, be treated for income tax purposes as rent from the lease that arises to L in that period of account for the purpose of determining L's liability to tax for the related tax year or years.

(3)The reductions of taxable rent under sections 614BH to 614BK depend on there being—

(a)a cumulative accountancy rental excess for the period of account of L in question, or

(b)a cumulative normal rental excess for the period of account of L in question.

(4)For the meaning of “cumulative accountancy rental excess” and “cumulative normal rental excess”, see sections 614BH and 614BJ respectively.