Commentary

B3.803 Balancing allowances

Business tax
Business tax | Commentary

B3.803 Balancing allowances

Business tax | Commentary

B3.803 Balancing allowances

A person is entitled to a balancing allowance for the chargeable period in which the relevant trade is sold or permanently discontinued and he is the last person carrying on the trade before its discontinuance or sale1. The amount of the balancing allowance is the difference between the amount of the qualifying expenditure and the amount of allowances previously given in respect of that expenditure (whether to the same or different persons)2.

The allowances previously given include writing-down allowances and initial allowances (but not investment allowances, which were available before 17 January 1966)3.

Example

D Ltd incurred capital expenditure on

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial