Section 809ZD — Finance Act 2008: Section 809ZA: expectation that relevant capital payment will not be paid

Section 809ZA: expectation that relevant capital payment will not be paid 809ZD 1 This section applies for income tax purposes if—

a section 809ZA applies by virtue 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).