Section 614BP — Income Tax Act 2007: Effect of disposals of leases: general

Effect of disposals of leases: general 614BP 1 This section applies if the current lessor (“L”) or a person connected with L disposes of—

a the lessor's interest under the lease, b the leased asset, or c an asset representing the leased asset (see section 614DD).

2 This Part has effect as if immediately before the disposal a period of account of L ended and another began.

3 If—

a two or more disposals within subsection (1) are made at the same time, and b there is any cumulative accountancy rental excess for any period of account of L in which the disposal occurs, subsection (2) has effect in relation to those disposals as if they together constituted a single disposal.

4 In this section “dispose” and “disposal” are to be read in accordance with TCGA 1992.

5 In cases where there is any cumulative accountancy rental excess for L's period of account in which the disposal occurs, section 37A of that Act (consideration on disposal of certain leases) makes provision for the purposes of that Act about the reduction of the consideration for the disposal by that excess in determining if a gain has accrued.