Part 9 Dredging allowances
Writing-down and balancing allowances
488 Balancing allowances
1
A person is entitled to a balancing allowance for a chargeable period if—
a
qualifying expenditure has been incurred on dredging,
b
in that chargeable period, the qualifying trade for the purposes of which the expenditure was incurred has been—
i
permanently discontinued, or
ii
sold,
c
the person is the last person carrying on the qualifying trade before its discontinuance or sale, and
d
the amount of the expenditure exceeds the amount of the allowances previously made in respect of it, whether to the same or different persons.
2
The amount of the balancing allowance is the amount of the difference.
3
For the purposes of subsection (1)—
a
b
a sale does not include a sale which is within subsection (4) or (5).
4
A sale is within this subsection if any of the following conditions is met—
a
the buyer is a body of persons over whom the seller has control;
b
the seller is a body of persons over whom the buyer has control;
c
both the seller and the buyer are bodies of persons and another person has control over both of them;
d
the seller and the buyer are connected persons.
In this subsection “body of persons” includes a partnership.
5
A sale is within this subsection if it appears that the sole or main benefit which might be expected to accrue to the parties, or any of them, from—
a
the sale, or
b
transactions of which the sale is one,
is the obtaining of a tax advantage under any of the provisions of this Act apart from Part 2 (plant and machinery allowances).