F1Part 3 Industrial buildings allowances

Chapter 7 Balancing adjustments

General

315 Main balancing events

(1)

The following are balancing events for the purposes of this Part—

(a)

the relevant interest in the building is sold;

(b)

if the relevant interest is a lease, the lease ends otherwise than on the person entitled to it acquiring the interest reversionary on it;

(c)

the building is demolished or destroyed;

(d)

the building ceases altogether to be used (without being demolished or destroyed);

(e)

if the relevant interest depends on the duration of a foreign concession, the concession ends.

(2)

“Foreign concession” means a right or privilege granted by the government of, or any municipality or other authority in, a territory outside the United Kingdom.

(3)

Other balancing events are provided for by—

  • section 328 (realisation of capital value where site of building is in enterprise zone);

  • section 343 (ending of highway concession);

  • section 350 (additional VAT rebates and balancing adjustments);

and a balancing event under this section may also occur as a result of section 317 (hotel not qualifying hotel for 2 years).