Introduction Overview Overview
2553.This Chapter is based on sections 782 and 785 of ICTA.
2554.This Chapter applies where a company carrying on a trade pays rent under a lease of an asset other than land or buildings and at any time before the lease was created the asset was used either (a) in that trade or (b) in another trade carried on by the person who then or later was carrying on the first trade and, in either case, when so used was owned by the company carrying on the trade in which it was used.
2555.If this Chapter applies, it provides that in computing the profits and gains of the trade the deduction in respect of a payment under the lease shall not exceed the commercial rent of the asset for the period for which the payment was made.
2556.This Chapter has the following structure.
	Section 863 summarises the Chapter.
	Section 864 states when the Chapter applies.
	Section 865 restricts corporation tax relief and carries forward relief which has been denied.
	Sections 866 and 867 supplement section 865.
	Sections 868 and 869 are interpretative.