Capital Allowances Act 2001 (c. 2)

Part 4 Agricultural buildings allowances

Chapter 5 Balancing adjustments

General

380 When balancing adjustments are made

(1) A balancing adjustment is made if—

(a) qualifying expenditure has been incurred, and

(b) a balancing event occurs in a chargeable period for which a person would (apart from this section) be entitled to a writing-down allowance.

(2) A balancing adjustment is either a balancing allowance or a balancing charge and is made for the chargeable period in which the balancing event occurs.

(3) A balancing allowance or balancing charge is made to or on the person entitled to the relevant interest in relation to the qualifying expenditure immediately before the balancing event.