Capital Allowances Act 2001 (c. 2)

Part 3 Industrial buildings allowances

Chapter 7 Balancing adjustments

Calculation of balancing adjustments

318 Building an industrial building etc. throughout

(1) This section provides for balancing adjustments where the building was—

(a) an industrial building, or

(b) used for research and development,

for the whole of the relevant period of ownership.

(2) A balancing allowance is made if—

(a) there are no proceeds from the balancing event, or

(b) the proceeds from the balancing event are less than the residue of qualifying expenditure immediately before the event.

(3) The amount of the balancing allowance is the amount of—

(a) the residue (if there are no proceeds);

(b) the difference (if the proceeds are less than the residue).

(4) A balancing charge is made if the proceeds from the balancing event are more than the residue, if any, of qualifying expenditure immediately before the event.

(5) The amount of the balancing charge is the amount of—

(a) the difference, or

(b) the proceeds (if the residue is nil).