Section 914 — Corporation Tax Act 2010: Recovery of bad debts following reduction under section 913

Recovery of bad debts following reduction under section 913 914 1 This section applies if in relation to the lease—

a the cumulative normal rental excess for any period of account of the current lessor (“L”) has been reduced under section 913(2) or (5) as a result 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 normal rental excess for that subsequent period.

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

3 If the relevant credit does not exceed the total of the reductions under section 913(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).