Part 10 Assured tenancy allowances
Chapter 6 Balancing adjustments
Calculation of balancing adjustments
517 Dwelling-house not a qualifying dwelling-house throughout
1
This section provides for balancing adjustments where the building was not a qualifying dwelling-house for a part of the relevant period of ownership.
2
A balancing allowance is made if—
a
the proceeds from the balancing event are less than the starting expenditure attributable to the dwelling-house, and
b
the total amount of the relevant allowances in respect of that expenditure is less than the adjusted net cost of the dwelling-house.
3
The amount of the balancing allowance is the amount of the difference between the adjusted net cost of the dwelling-house and the total amount of the relevant allowances.
4
A balancing charge is made if the proceeds from the balancing event are equal to or more than the starting expenditure attributable to the dwelling-house.
5
The amount of the balancing charge is equal to the total amount of the relevant allowances.
6
A balancing charge is also made if—
a
the proceeds from the balancing event are less than the starting expenditure attributable to the dwelling-house, and
b
the total amount of the relevant allowances in respect of that expenditure is more than the adjusted net cost in relation to the dwelling-house.
7
The amount of the balancing charge is the amount of the difference between the total amount of those allowances and the adjusted net cost.
8
“The relevant allowances” means—
a
any initial allowance under paragraph 1 of Schedule 12 to FA 1982, and
b
any writing-down allowance made for a chargeable period ending on or before the date of the balancing event in question.