Corporation Tax Act 2010 section 896

Normal rent

Section 896 defines what "normal rent" means for the purposes of the finance leasing rules in Part 21 of the Corporation Tax Act 2010.

• Normal rent is the rental income a lessor would normally bring into account from a lease for corporation tax purposes, ignoring the special rules in Part 21.
• It is calculated by reference to the lessor's period of account, not its accounting period.
• The normal rent figure feeds into the lessor's corporation tax liability for the related accounting period or periods.
• The meaning of "related accounting period" is defined separately in section 932(4).