This section gives the starting expenditure for the purposes of this Chapter.

If the person to or on whom the balancing allowance or balancing charge falls to be made is the person who incurred the qualifying expenditure, that expenditure is the starting expenditure.

Otherwise, the starting expenditure is the residue of qualifying expenditure at the beginning of the relevant period of ownership.

If section 340 (treatment of demolition costs) applies, the starting expenditure is increased by an amount equal to the net cost of the demolition.