Regulation 90

This regulation applies for the purpose of ascertaining whether, and to what extent, the consideration is to be taken to have been written off as a bad debt.

The whole or any part of the consideration for a supply is to be taken to have been written off as a bad debt when an entry is made in relation to that supply in the refunds for bad debts account or reductions pursuant to bad debts account in accordance with regulation 86; and this has effect regardless of whether a claim can be made in relation to that supply at that time.

Where the claimant owes an amount of money to the debtor which can be set‑off, the consideration written off in the accounts is to be reduced by the amount so owed.

Where the claimant holds in relation to the purchaser an enforceable security, the consideration written off in the accounts of the claimant is to be reduced by the value of that security.