Corporation Tax Act 2010 section 269ZX

Increase of deductions allowance in connection with onerous or impaired leases

Section 269ZX provides for an increase to a company's deductions allowance where certain credits relating to onerous or impaired leases are brought into account in calculating the company's profits.

• Where a company recognises a relevant credit (a relevant reversal credit, relevant remeasurement credit, or relevant variable lease payment) in its specified profits for an accounting period, and those specified profits exceed nil, the deductions allowance is increased.
• The increase to the deductions allowance is the lower of the total relevant credits brought into account and the amount of the company's specified profits for that period.
• Specified profits are calculated as the sum of the company's total profits (with certain modifications) plus any I-E profit (the insurance company profit measure) for the accounting period.
• The increase applies for all purposes and is additional to the deductions allowance otherwise determined for the company, whether it is a member of a group or a standalone company.