BLM74040 - Schedule 12 FA 1997: bad debts: reducing cumulative accountancy rental excess - where there will be a practical effect

The cases where a FA97/Sch12/Para9 restriction will have a practical effect are limited to those where:

• subsequent to the bad debt write off, the payment of rentals under the lease is resumed; or
• the lessor's outlay on the leased asset does not wholly qualify for capital allowances and capital losses can be recognised on its sale.