Section 269ZYZA | Other relevant credits ^F1F2

(1)For the purposes of section 269ZX a “relevant remeasurement credit” is a credit, or other income, brought into account in respect of a relevant remeasurement excess.^F1F2

(2)There is a “relevant remeasurement excess” where—^F1F2

(a)a company (“C”) is the tenant under a lease of land (and “L” is the landlord),^F1F2

(b)C’s accounts include a relevant right-of-use asset impairment loss in connection with the lease,^F1F2

(c)under an arrangement (“C’s arrangement”) made at arm’s length, C’s obligations under the lease are varied or cancelled,^F1F2

(d)as a result of C’s arrangement, C is required, for accounting purposes, to remeasure the lease liability in relation to the lease,^F1F2

(e)the remeasurement results in the lease liability being reduced by an amount which exceeds the amount of the right-of-use asset recognised in relation to the lease (taking account of any right-of-use asset impairment loss), and^F1F2

(f)the relevant requirements are met (see subsection (5)).^F1F2

(3)For the purposes of section 269ZX a variable lease payment is “relevant” if it is a credit, or other income, brought into account in circumstances described in subsection (4).^F1F2

(4)Those circumstances are where—^F1F2

(a)a company (“C”) is the tenant under a lease of land (and “L” is the landlord),^F1F2

(b)C’s accounts include a relevant right-of-use asset impairment loss in connection with the lease,^F1F2

(c)under an arrangement (“C’s arrangement”) made at arm’s length, there is a change in the payments that would have been payable by C under the lease on or before 30 June 2022,^F1F2

(d)the change would not have been made if it were not for coronavirus,^F1F2

(e)for accounting purposes, C opts to record the change by means of variable lease payments (rather than by remeasuring its lease liability in relation to the lease), and^F1F2

(f)the relevant requirements are met (see subsection (5)).^F1F2

(5)For the purposes of subsections (2) and (4), the relevant requirements are met if—^F1F2

(a)the requirements in section 269ZY(3)(b) and (c), or^F1F2

(b)the requirements in section 269ZY(3)(c) and (5)(a), (b), (d) and (e),^F1F2

are met in relation to C, L and C’s arrangement (as defined in subsection (2) or (4), as appropriate).

(6)In determining whether a company is required to account as described in subsection (2)(d), ignore any option the company has to account as described in subsection (4)(e).^F1F2

(7)The Treasury may by regulations substitute for the date for the time being specified in subsection (4)(c) such later date as they consider appropriate.^F1F2

(8)In this section—^F1F2

“coronavirus” means severe acute respiratory syndrome coronavirus 2;

“lease liability”, in relation to a company and a lease, means a liability recognised in the company’s accounts to reflect the company’s obligations as tenant under the lease;

“right-of-use asset”, in relation to a company and a lease, means an asset recognised in the company’s accounts to reflect the company’s right to use land as the tenant under the lease;

“relevant right-of-use impairment loss” has the meaning given in section 269ZY(2A).