Part 3

Industrial buildings allowances
Chapter 7

Balancing adjustments

General

Balancing event where hotel not qualifying hotel for 2 years
317
1
This section applies if—
a
a building ceases to be a qualifying hotel otherwise than on the occurrence of a balancing event which is within section 315(1), and
b
after the building ceases to be a qualifying hotel, a period of 2 years elapses—
i
in which it is not a qualifying hotel, and
ii
without the occurrence of a balancing event.
2
This Part has effect as if—
a
the relevant interest in the building had been sold at the end of the 2 year period, and
b
the net proceeds of the sale were equal to the market value of that interest.
3
Subsection (2) does not affect section 285 (building treated as industrial building during period of temporary disuse).
4
But a building is not to be treated under section 285(b) as continuing to be a qualifying hotel for more than 2 years after the end of the chargeable period in which it falls temporarily out of use.
5
This section does not apply to qualifying enterprise zone expenditure.