Capital Allowances Act 2001

509 Calculation of allowance after sale of relevant interest

(1) This section applies if—

(a) the relevant interest in a qualifying dwelling-house is sold, and

(b) a balancing adjustment falls to be made under section 513 as a result of the sale.

(2) If this section applies, the writing-down allowance for any chargeable period ending after the sale is—

where—

• RQE is the amount of the residue of qualifying expenditure attributable to the dwelling-house immediately after the sale,

• A is the length of the chargeable period, and

• B is the length of the period from the date of the sale to the end of the period of 25 years beginning with the day on which the dwelling-house was first used.

(3) On any later such sale, the writing-down allowance is further adjusted in accordance with this section.