Commentary

B3.425 Anti-avoidance affecting proceeds of balancing event

Business tax
Business tax | Commentary

B3.425 Anti-avoidance affecting proceeds of balancing event

Business tax | Commentary

B3.425 Anti-avoidance affecting proceeds of balancing event

For balancing events occurring after 26 November 2002 (subject to transitional provisions), an anti-avoidance rule1 has been introduced to prevent a balancing allowance being created or increased by means of a tax avoidance scheme that depresses an asset's market value and thus the amount to be brought into account on a balancing event (eg a sale). The rule denies entitlement to a balancing allowance, though the unrelieved balance of expenditure immediately after the event will be computed as if the allowance had been made. For further details, see B3.108C.

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