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Bad debt—entitlement to tax credit

A person is entitled to a tax credit for bad debts on the amount of CCL chargeable calculated by reference to the outstanding amount¹. However, this only applies where²:

1. Ìý

   •ÌýÌýÌýÌý a person has supplied a taxable commodity and has accounted for and paid the CCL chargeable on the supply

2. Ìý

   •ÌýÌýÌýÌý that person and the recipient of the supply are not connected (see TA 1988, s 839³) or are not the same person

3. Ìý

   •ÌýÌýÌýÌý that person has issued to the recipient a CCLAD (or, if the issue of such a document is not required by or under the CCL rules, other invoice) relating to the supply showing the CCL chargeable

4. Ìý

   •ÌýÌýÌýÌý the whole or any part of the price for the supply has been written off in his accounts as a bad debt, and

5. Ìý

   •ÌýÌýÌýÌý the period of six months referred to below has elapsed

'The outstanding amount' refers to⁴:

1. Ìý

   •