Corporation Tax Act 2010 section 841

Aggregation and apportionment of payments

Section 841 explains how lease or similar payments must be aggregated or apportioned when applying the commercial rent cap under section 839.

• Where more than one payment covers the same period, those payments must be added together for comparison against the commercial rent limit.
• Where payments cover overlapping periods, each payment must be apportioned on a time basis, and the portions falling within the common overlap must then be added together.
• References to payments include parts of payments that, under section 840, are treated as made in a later period than the period in which they were actually made.
• The overall effect is to ensure that the total amount tested against the commercial rent cap accurately reflects what has been paid or deemed paid for any given period, preventing the cap from being circumvented through the timing or structuring of payments.