Section 614BG — Income Tax Act 2007: Reduction of taxable rent by cumulative rental excesses: introduction

Reduction of taxable rent by cumulative rental excesses: introduction 614BG 1 This section and sections 614BH to 614BK 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 614BH to 614BK “ taxable rent ”, in relation to a period of account of L, means the amount that would, apart from those sections, be treated for income 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 tax year or years.

3 The reductions of taxable rent under sections 614BH to 614BK 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 614BH and 614BJ respectively.