Where a debt under a long funding finance lease turns out to
be bad the bad debt may be reflected in a reduction in rental
earnings and/or as a loss elsewhere in the accounts. The loss will
therefore be relieved under ICTA88/S502B or ICTA88/S502C, as
appropriate.
Any later recovery of the bad debt would be taxed under
ICTA88/S502C unless it was taken through rental earnings, in which
case it would be taxed under ICTA88/S502B.
