Section 840 — Corporation Tax Act 2010: Carrying forward parts of payments

Carrying forward parts of payments 840 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.