Corporation Tax Act 2010 section 375

Adjustments where sections 360 to 369 subsequently disapplied by section 373

Section 375 deals with the adjustments required when the long funding lease rules for lessors (sections 360 to 369) have already been applied to calculate a company's profits or losses, but the anti-avoidance provision in section 373 subsequently kicks in to disapply those rules.

• This section applies where a company has already used the long funding lease rules (sections 360 to 369) to calculate its taxable profits or losses, and the anti-avoidance conditions in section 373 are subsequently triggered
• When triggered, both the amounts previously recognised under the long funding lease rules and any new amounts arising under section 373 must be adjusted on a just and reasonable basis
• The purpose is to correct the company's tax position so that earlier computations made under sections 360 to 369 are properly reconciled with the new treatment required by the anti-avoidance rule
• HMRC must make all necessary assessments and amendments to assessments to give effect to these adjustments