Part 6

Research and development allowances
Chapter 3

Allowances and charges

Balancing charges
442
1
This section applies if—
a
an allowance is made to a person for a chargeable period in respect of qualifying expenditure, and
b
the person is required to bring a disposal value into account for a later chargeable period in respect of that expenditure.
2
The person is liable to a balancing charge for the later chargeable period in respect of the qualifying expenditure.
3
The amount of the balancing charge is—
a
the amount (if any) by which the disposal value to be brought into account for the period exceeds any unclaimed allowance, or
b
if less, the allowance made in respect of the qualifying expenditure.
4
“Unclaimed allowance” means any part of the allowance to which the person was entitled in respect of the qualifying expenditure but which has not been claimed.
5
This section is to be read with section 449 (effect on balancing charges of additional VAT rebates in earlier chargeable periods).