Part 3Industrial buildings allowances
Chapter 7Balancing adjustments
Qualifying enterprise zone expenditure: effect of realising capital value
330Exception for payments more than 7 years after agreement
1
Capital value is not realised for the purposes of section 328 if the payment is made more than 7 years after—
a
the agreement under which the qualifying expenditure was incurred was entered into, or
b
if that agreement was conditional, the time when the agreement became unconditional.
2
If an agreement is made to pay in respect of any event an amount of capital value which would be attributable to the subordinate interest, and—
a
the agreement is made, or if conditional becomes unconditional, before the end of the period of 7 years referred to in subsection (1), and
b
the event occurs, or any payment in consideration of the event is made, after the end of that period,
the event or payment is treated for the purposes of subsection (1) as occurring or made before the end of the 7 years.
3
Subsection (1) does not apply if arrangements—
a
under which the person entitled to the relevant interest acquired it, or
b
which were made in connection with its acquisition,
include provision which requires, or makes substantially more likely, any of the events set out in subsection (4).
4
The events are—
a
the subsequent sale of the relevant interest;
b
the subsequent grant of an interest in land out of the relevant interest;
c
any other event on which capital value attributable to the subordinate interest would be paid or treated as paid.