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Legislation
Corporation Tax Act 2010

Chapter 2 Capital payments in respect of leases treated as income

  • Section 890 Capital payments in respect of leases treated as income
  • Section 891 Apportionments for leases of plant or machinery and other property
  • Section 892 Deduction where failure to make relevant capital payment expected
  • Section 893 Meaning of “capital payment”, “relevant capital payment” etc
  • Section 894 Other interpretation of Chapter
  1. Chapter 2 · Capital payments in respect of leases treated as income
  2. Deduction where failure to make relevant capital payment expected

Section 892 | Deduction where failure to make relevant capital payment expected

From legislation.gov.uk

(1)This section applies for corporation tax purposes if—

(a)section 890 applies as a result of subsection (1)(a) of that section, and

(b)at any time the lessor reasonably expects that the relevant capital payment will not be paid or will not be paid in full.

(2)For the purposes of calculating the profits of the lessor, a deduction is allowed for the period of account which includes that time.

(3)The amount of the deduction is equal to the amount reasonably expected not to be paid.

(4)No other deduction is allowed in respect of the matters mentioned in subsection (1)(b).

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