Section 912 — Corporation Tax Act 2010: Recovery of bad debts following reduction under section 911

Recovery of bad debts following reduction under section 911 912 1 This section applies if in relation to the lease—

a the cumulative accountancy rental excess for any period of account of the current lessor (“L”) has been reduced under section 911(2) or (5) because of a bad debt deduction, b in a subsequent period of account of L, an amount (“the relevant credit”) is recovered or credited in respect of the amount which constituted the bad debt deduction, and c there is a cumulative accountancy rental excess for that subsequent period.

2 The cumulative accountancy rental excess for the subsequent period is increased.

3 If the relevant credit does not exceed the total of the reductions under section 911(2) or (5), the increase is by the relevant credit.

4 Otherwise, the increase is limited to that total.

5 In this section “ bad debt deduction ” has the meaning given in section 911(6).