15‑40 Writing off bad debts15‑40 Writing off bad debts

15‑40 Writing off bad debts

(1) You have a decreasing luxury car tax adjustment if: (a) you made a *taxable supply of a luxury car; and (b) the whole or part of the *consideration for the supply has not been received; and (c) you write off as bad the whole or a part of the debt, or the whole or a part of the debt has been *overdue for 12 months or more. (2) The decreasing luxury car tax adjustment is equal to: (a) the amount of luxury car tax that was payable by you on the supply taking into account any previous *luxury car tax adjustments for the supply; minus (b) the amount of luxury car tax (if any) that would be payable if the *price of the supply of the car (disregarding any previous *luxury car tax adjustments for the supply) was reduced by an amount equal to the sum of: (i) the amount or amounts of the debt written off as bad; and (ii) the amount of the debt that has been *overdue for 12 months or more (other than amounts already written off). (3) You cannot have a *luxury car tax adjustment under this section if you *account on a cash basis.