(1)No balancing adjustment is to be made under Part 3 of CAA 2001 (industrial buildings allowances) if—
(a)the qualifying expenditure in question is not qualifying enterprise zone expenditure for the purposes of that Part, and
(b)the balancing event in question is a post-commencement balancing event,
and in paragraph (b) “post-commencement balancing event” means any balancing event for the purposes of that Part which occurs on or after 21st March 2007, but does not include an event which occurs before 1st April 2011 in pursuance of a relevant pre-commencement contract (see subsection (7)).
(2)For the purposes of section 311 of that Act (calculation of allowance after sale of relevant interest) the amount of the residue of qualifying expenditure immediately after a post-commencement relevant event is taken to be the amount of the residue of qualifying expenditure immediately before that event.
(3)In subsection (2)—
“qualifying expenditure” does not include any expenditure which is qualifying enterprise zone expenditure for the purposes of that Part, and
“post-commencement relevant event” means any relevant event within the meaning of section 311 of that Act which occurs on or after 21st March 2007, but does not include an event which occurs before 1st April 2011 in pursuance of a relevant pre-commencement contract.
(4)No balancing adjustment is to be made under Part 4 of that Act (agricultural buildings allowances) if the balancing event in question is a post-commencement balancing event.
(5)For the purposes of section 376 of that Act (calculation of allowance after acquisition) the amount of the residue of qualifying expenditure immediately after a post-commencement balancing event is taken to be the amount of the residue of qualifying expenditure immediately before that event.
(6)In subsections (4) and (5) “post-commencement balancing event” means any balancing event under section 381 of that Act (as a result of an election made in accordance with section 382 of that Act) which occurs on or after 21st March 2007, but does not include an event which occurs before 1st April 2011 in pursuance of a relevant pre-commencement contract.
(7)For the purposes of this section a contract is “a relevant pre-commencement contract” if—
(a)the contract is a contract in writing made before 21st March 2007,
(b)the contract is unconditional or its conditions have been satisfied before that date,
(c)no terms remain to be agreed on or after that date, and
(d)the contract is not varied in a significant way on or after that date.