Where the disposal proceeds are less than cost and the total
'accountancy rental earnings' taxed exceed the 'normal rent' (so
that there is a balance of unrelieved cumulative accountancy rental
excess) the lessor will normally have suffered a bad debt. This
will have been be fully relieved under the ordinary rules and no
further deduction will be due. (Indeed a restriction of cumulative
accountancy rental excess under Paragraph 9 Schedule 12 may be
appropriate). A very simple example illustrating this is at
BLM73020.
