Part 3

Industrial buildings allowances
Chapter 7

Balancing adjustments

Calculation of balancing adjustments

Building an industrial building etc. throughout
318
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).