Capital Allowances Act 1990 (repealed)

129 Balancing events. U.K.

(1) Subject to subsection (2) below, in relation to expenditure (“the original expenditure") for which, apart from section 128, a person (“the former owner") would be entitled to [F1 an allowance under this Part], the following events are balancing events for the purposes of this Part—

(a) the acquisition of the relevant interest by another person (“the new owner") as mentioned in section 126; and

(b) where any building, fence or other works on the construction of which the expenditure was incurred is demolished, destroyed or otherwise ceases to exist as such.

(2) An event falling within subsection (1) above is not a balancing event for the purposes of this Part unless an election is made with respect to that event by notice given to [F2 an officer of the Board; and—

(a) an election under this subsection for the purposes of income tax shall be made on or before the first anniversary of the 31st January next following the year of assessment in which ends the chargeable period related to the occurrence of the event; and

(b) an election under this subsection for the purposes of corporation tax shall be made not more than two years after the end of the chargeable period related to the occurrence of the event].

(3) Where, during the writing-down period applicable to the original expenditure, a balancing event falling within subsection (1)(a) above occurs, the amount of any writing-down allowances to which the new owner is entitled for chargeable periods which, F3 ... , end after the balancing event shall be determined as if—

(a) that part of the writing-down period applicable to the original expenditure which falls after the balancing event were itself the writing-down period in which the allowances in respect of that expenditure were to be made; and

(b) the allowances were in respect of expenditure equal to the residue of the original expenditure (determined under section 128(2)(a)) immediately before the balancing event less the amount of any balancing allowance made to the former owner or, as the case may be, plus the amount on which any balancing charge was made on him by reason of the balancing event.

(4) Subject to subsection (5) below, an election under this section shall be made as follows—

(a) where the event falls within subsection (1)(a) above, jointly by the former owner and the new owner; and

(b) where the event falls within subsection (1)(b) above, by the former owner.

(5) No election may be made under this section if any person by whom that election should be made is not within the charge to tax in the United Kingdom; and no election may be made in relation to an acquisition falling within subsection (1)(a) above if it appears with respect to that acquisition, or with respect to transactions of which that acquisition is one, that the sole or main benefit which (apart from section 157) might have been expected to accrue to the parties or any of them was the obtaining of an allowance, or a greater allowance, under this Part.

Textual Amendments

F1 Words in s. 129(1) substituted (27.7.1993 with effect as mentioned in s. 114(2) of the amending Act) by 1993 c. 34, s. 114, Sch. 12 para.8

F2 Words in s. 129(2) substituted (with effect in accordance with s. 135(3) of the amending Act) by Finance Act 1996 (c. 8), Sch. 21 para. 33

F3 Words in Act repealed (with effect in accordance with s. 211(2) of the amending Act) by Finance Act 1994 (c. 9), s. 213(1), Sch. 26 Pt. 5(24)

Modifications etc. (not altering text)

C1 S. 129(2) modified (for the year of assessment 1988-1989) by S.I. 1991/851, regs. 1, 9, Sch. 2.

C2 S. 129(2) modified (for the year of assessment 1989-1990) by S.I. 1992/511, regs. 1, 9, Sch. 2.

C3 S. 129(2) applied (with modifications) (for the year of assessment 1990–91) by S.I. 1993/415, reg. 9, Sch. 2

C4 S. 129(2) modified (for the year of assessment 1991-92) by The Lloyds Underwriters (Tax) (1991-92) Regulations 1994 (S.I. 1994/728), regs. 1(1), 9, Sch. 2

C5 S. 129(2) modified (19.9.1994) by Coal Industry Act 1994 (c. 21), s. 68(4), Sch. 4 para. 20(5); S.I. 1994/2189, art. 2, Sch.

C6 S. 129(2) modified (for the years of assessment 1992-93 and 1993-94) by The Lloyds Underwriters (Tax) (1992–93 to 1996–97) Regulations 1995 (S.I. 1995/352), regs. 1(1), 14(1), Sch.

C7 S. 129(2) modified (for the year of assessment 1994-95) by The Lloyds Underwriters (Tax) (1992–93 to 1996–97) Regulations 1995 (S.I. 1995/352), regs. 1(1), 15(1), Sch.