Section 840 | Carrying forward parts of payments

(1)This section applies if—

(a)section 839 has effect, and

(b)conditions A and B are met.

(2)Condition A is that under section 839 part of a payment which would otherwise be taken into account as mentioned in section 835(2)(c) or 836(2)(c) is not taken into account.

(3)Condition B is that one or more later payments are made, by the transferor or a person associated with the transferor, under—

(a)the lease (if section 839 has effect because of section 835(2)), or

(b)the rentcharge or other transaction mentioned in section 836(2)(b) (if section 839 has effect because of section 836(2)).

(4)The part of the payment mentioned in subsection (2) may be carried forward and treated for the purposes of the calculation at step 1 of section 76 of FA 2012 as if it were made—

(a)when the next of the later payments is made, and

(b)for the period for which that later payment is made.

(5)So far as a part of a payment carried forward under this section is not taken into account in the calculation at step 1 of section 76 of FA 2012, it may be carried forward again under this section.