Section 681AD: Relevant income tax relief: deduction not to exceed commercial rent
957.This section restricts income tax relief for payments falling within section 681AA or 681AB and, in certain cases, provides for such relief to be carried forward. It is based on section 779(1), (2) and (4) to (6) of ICTA.
958.Subsection (3) puts on a clear statutory footing the practice of spreading lease rental expenditure in accordance with GAAP before applying section 779 of ICTA. This is a minor change in the law. See Change 11 in Annex 1.
959.Section 681CC makes the same change in rewriting section 782 of ICTA.