Section 388: Acquisition of relevant interest in part of land, etc.
1330.This section is based on section 128(7) of CAA 1990. It deals with balancing events for part of the related land or part of an agricultural building.
1331.Subsection (1) applies the section to balancing events under:
section 381(2)(a) if a new owner acquires part of the relevant interest in the related agricultural land; and
section 381(2)(b) and (c) if part of an agricultural building is demolished, destroyed or ceases to be used.
1332.Subsection (2) provides the apportionment rule. The balancing adjustment is to be calculated by reference to the relevant part of the qualifying expenditure.
1333.Subsection (3) makes clear that section 377 applies. The effect is that no writing-down allowance is due for the chargeable period of the balancing event in respect of the part of the qualifying expenditure for which there is a balancing adjustment.
