B3.1012 Balancing adjustments
These allowances are not available for expenditure incurred on or after 6 April 2013 (income tax) or 1 April 2013 (corporation tax). However, balancing adjustments mentioned is this article can still apply.
For the chargeable period in which a 'balancing event' (see below) occurs, a balancing adjustment (ie a balancing allowance or a balancing charge) is made to, or on, the person who incurred the qualifying expenditure1. However, no balancing adjustment is made if the 'balancing event' takes place more than seven years after the time when the flat was first suitable for letting as a dwelling2.
Where more than one balancing event occurs, only the first gives rise to a balancing adjustment3. The subsequent events do not give rise to balancing adjustments.
The following are 'balancing events' for these purposes4:
(a) the relevant interest (see B3.1006) in the flat is sold
(b) a long