Section 614BI — Income Tax Act 2007: Reduction of taxable rent by the cumulative accountancy rental excess

Reduction of taxable rent by the cumulative accountancy rental excess 614BI 1 This section applies if a period of account of the current lessor (“L”) is one for which—

a the normal rent in relation to the lease exceeds the accountancy rental earnings, and b there is a cumulative accountancy rental excess.

2 The taxable rent for the period of account is reduced by setting against it the cumulative accountancy rental excess (but not so as to reduce that rent below the amount of the accountancy rental earnings).

3 But see section 614BL(3) and (4) (under which the amount of the cumulative accountancy rental excess which may be set against the taxable rent is limited in some circumstances).