Section 269ZX | Increase of deductions allowance in connection with onerous or impaired leases

(1)This section applies if—

(a)a relevant 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.

(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 relevant credit (or, if there is more than one, the sum of the relevant credits), or

(b)if lower, the amount of the specified profits.