Section 614BM | Recovery of bad debts following reduction under section 614BL ^F1

(1)This section applies if in relation to the lease—

(a)the cumulative accountancy rental excess for any period of account of the current lessor (“L”) has been reduced under section 614BL(2) or (5) because of a bad debt deduction,

(b)in a subsequent period of account of L, an amount (“the relevant credit”) is recovered or credited in respect of the amount which constituted the bad debt deduction, and

(c)there is a cumulative accountancy rental excess for that subsequent period.

(2)The cumulative accountancy rental excess for the subsequent period is increased.

(3)If the relevant credit does not exceed the total of the reductions under section 614BL(2) or (5), the increase is by the relevant credit.

(4)Otherwise, the increase is limited to that total.

(5)In this section “bad debt deduction” has the meaning given in section 614BL(6).