The catching-up charge under FA97/Sch12/Para13 is in addition
to any actual charge under paragraph 5 (see
BLM70801) for the period from the time
the lease first comes within Part I to the (actual) end of the
period of account in question. To avoid complications concerned
with the set-off of cumulative excesses not only is a period of
account deemed to end immediately before the time the lease first
comes within Part I but also immediately afterwards. The effect is
to segregate the catching-up charge in its own brief period of
account.
These deemed periods of account only exist for the purposes
of Schedule 12 and not for any wider purposes. Thus in a case where
the lease first comes within Part I in the middle of an actual
period of account the rental income recognised under paragraph 13
is added to any current rental income recognised under paragraph 5
and the total brought into account in the computation for the
accounting period (or year of assessment in an income tax case)
corresponding to the actual period of account.
