Section 892 — Corporation Tax Act 2010: Deduction where failure to make relevant capital payment expected

Deduction where failure to make relevant capital payment expected 892 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).