Section 269ZX — Corporation Tax Act 2010: Increase of deductions allowance in connection with onerous or impaired leases

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