BLM72010 - Schedule 12 FA 1997:
relief for set-offs against rentals: features of rental excess
reliefs
The following features are common to the two types of rental
excess reliefs ('cumulative accountancy rental excess' and
'cumulative normal rental excess'):
- the reliefs apply in precisely the same
way to leases within both Part I and Part II of FA97/Sch12;
- both apply on a lease by lease basis (but
see
BLM72105 for the approach in practice to
small leases);
- in neither case is any regard paid to the
position for periods ending prior 26 November 1996 (when a new
period of account is deemed to begin for the purposes of the
schedule);
- neither is dependent on a claim - the
reliefs are mandatory;
- on the assignment of the lessor's interest
in the leased asset in circumstances treated as no gain/no loss for
capital gains purposes, the assignee inherits both types of unused
relief (see
BLM72130).
