Capital Allowances Act 2001 (c. 2)

Modifications etc. (not altering text)

C1 S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14), Sch. 30 para. 7

Part 10 U.K. Assured tenancy allowances

Chapter 5 U.K. Writing-down allowances

Entitlement to and calculation of writing-down allowances U.K.

509 Calculation of allowance after sale of relevant interest U.K.

(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.