Finance Leasing Manual - FLM34.07

Bad debts: reducing cumulative accountancy rental excess

The necessary rules reducing cumulative accountancy rental excess for a Schedule D Case I bad debt deduction are in Paragraph 9 of Schedule 12. They address separately the case where a bad debt deduction is given for a period of account in which

• accountancy rental earnings exceed normal rent (see FLM34.09)

• the normal rent is taxed (see FLM34.10).