Section 906 — Corporation Tax Act 2010: Reduction of taxable rent by cumulative rental excesses: introduction

Reduction of taxable rent by cumulative rental excesses: introduction 906 1 This section and sections 907 to 910 provide for reductions of the taxable rent of a current lessor (“L”) under a lease to which this Chapter applies.

2 In this section and sections 907 to 910 “ taxable rent ”, in relation to a period of account of L, means the amount that would, apart from those sections, be treated for corporation tax purposes as rent from the lease that arises to L in that period of account for the purpose of determining L's liability to tax for the related accounting period or periods.

3 The reductions of taxable rent under sections 907 to 910 depend on there being—

a a cumulative accountancy rental excess for the period of account of L in question, or b a cumulative normal rental excess for the period of account of L in question.

4 For the meaning of “cumulative accountancy rental excess” and “cumulative normal rental excess”, see sections 907 and 909 respectively.