BLM52025 - Right-of-use assets: right-of-use asset lessees: the spreading rules: cessation
Where a lessee permanently ceases activities that generate taxable profits before the entire adjustment amount has been accounted for, the remaining amount is treated as arising to the lessee immediately before the cessation. This ensures that the lessee's profits are accurately calculated for tax purposes. Any part of the adjustment treated as arising to a transferee is excluded from this rule (see BLM52020).