Commentary

B3.1113 Business premises renovation—balancing adjustments

Business tax
Business tax | Commentary

B3.1113 Business premises renovation—balancing adjustments

Business tax | Commentary

B3.1113 Business premises renovation—balancing adjustments

When balancing adjustments are made

A 'balancing adjustment' is made if qualifying expenditure has been incurred and a balancing event occurs1. A 'balancing adjustment' is either a balancing allowance or a balancing charge; the adjustment is made for the chargeable period in which the balancing event (see below) takes place2.

The balancing allowance or balancing charge is made on the person who incurred the qualifying expenditure3.

A balancing adjustment is not made if the balancing event takes place more than five years (seven years for expenditure incurred before 1 April 2014 (corporation tax) or 6 April 2014 (income tax)) after the time when the qualifying building was first used or suitable for letting for use for either of the purposes mentioned in head (b) of B3.11044.

Where more than one balancing event occurs, only the first gives rise to a balancing adjustment5.

Balancing events

The following are balancing events for the purposes

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