Overview Part 1: New Part 11A of ITA 2007 Section 614BP: Effect of disposals of leases: general
868.This section treats a period of account of the lessor as coming to an end for the purposes of Part 11A immediately before any disposal of the lessor’s interest under the lease, the leased asset or an asset representing the leased asset. It is based on paragraph 12(5) to (7) of Schedule 12 to FA 1997.
869.This enables the cumulative accountancy rental excess or the cumulative normal rental excess for the period of account of the lessor that then begins, and in which the disposal takes place, to be calculated.
870.The remaining sub-paragraphs of paragraph 12 of Schedule 12 to FA 1997 are rewritten as section 37A of TCGA by Part 2 of this Schedule. See the commentary on that section. Subsection (5) provides a signpost to that section.