BLM52025 - IFRS 16 leases: IFRS 16 lessees: The spreading rules: Cessation

If the lessee permanently ceases to carry on activities the profits of which are chargeable to income tax and corporation tax, and the cessation occurs before the whole of the amount of an adjustment has been treated as arising to the lessee, then except for any part of the adjustment which is treated as arising to a transferee (see BLM52020), the amount that has not yet been treated as arising is treated as arising to the lessee and is to be brought into account in calculating the profits of the lessee immediately before the cessation.