Income Tax Act 2007 section 614AA

Normal rent

Section 614AA defines the term "normal rent" for the purposes of the finance leasing rules in Part 11A, establishing the baseline rental income a lessor would otherwise bring into account for income tax purposes.

• Normal rent is the rent a lessor would ordinarily recognise from a lease for a given period of account, ignoring the special rules in Part 11A.
• It represents the amount used to determine the lessor's income tax liability for the related tax year or years.
• The definition provides a baseline figure against which adjustments under the finance leasing rules can be measured.
• The meaning of "related tax year" is found in section 614DB(4).