Corporation Tax Act 2010 section 915

Effect of disposals of leases: general

Section 915 deals with what happens for the purposes of the leasing rules when a lessor, or a person connected with the lessor, disposes of the lease interest, the leased asset, or an asset representing the leased asset.

• When a lessor or connected person disposes of the lease interest, the leased asset, or a representative asset, the lessor's period of account is treated as ending immediately before the disposal and a new one beginning at that point.
• This deemed period-end allows the cumulative accountancy rental excess or cumulative normal rental excess to be properly calculated up to and including the period in which the disposal takes place.
• Where two or more such disposals occur at the same time and there is a cumulative accountancy rental excess for the period of account in which the disposal occurs, the simultaneous disposals are treated as a single disposal.
• Where there is a cumulative accountancy rental excess for the lessor's period of account in which the disposal occurs, section 37A of the Taxation of Chargeable Gains Act 1992 reduces the disposal consideration by that excess when determining whether a chargeable gain has accrued.