’Income-into-capital’ schemes and back loaded leases: Relief for set-offs against rentals: cumulative accountancy rental excess: example 1
The simple example below, covering the first six years of a lease, illustrates the carry forward and set off of cumulative accountancy rental excesses (‘CARE’). There is a more complex example involving also cumulative normal rental excesses in BLM72065.
|Period||‘Normal rent’||‘Accountancy rental earnings’||Taxable before relief for cumulative accountancy rental excess b/f||Relief for cumulative accountancy rental excess b/f||Taxable after relief for cumulative accountancy rental excess b/f||Cumulative accountancy rental excess b/f|
*restricted to excess of normal rent over accountancy rental earnings.