Section 681AF — Income Tax Act 2007: Carrying forward parts of payments

Carrying forward parts of payments 681AF 1 This section applies if—

a section 681AE has effect, and b conditions A and B are met.

2 Condition A is that under section 681AE part of a payment which would otherwise be allowed as a relevant deduction from earnings is not allowed.

3 Condition B is that one or more later payments are made, by the transferor or a person associated with the transferor, under—

a the lease (if section 681AE has effect because of section 681AA(2)), or b the rentcharge or other transaction mentioned in section 681AB(2)(b) (if section 681AE has effect because of section 681AB(2)).

4 The part of the payment mentioned in subsection (2) may be carried forward and treated for the purposes of a relevant deduction from earnings as if it were made—

a when the next of the later payments is made, and b for the period for which that later payment is made.

5 So far as a part of a payment carried forward under this section is not allowed as a relevant deduction from earnings, it may be carried forward again under this section.