Section 809ZD Section 809ZA: expectation that relevant capital payment will not be paid
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Amendments
Section 809ZD inserted by Finance Act 2008 section 55 and Schedule 20 para 2(1) in relation to cases where there is first an obligation of the kind mentioned in section 809ZA(1)(a) on or after 13 December 2007, and capital payments within section 809ZA(1)(b) made on after that date.
(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).
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