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.