Commentary

B3.908 Balancing allowances and balancing charges

Business tax
Business tax | Commentary

B3.908 Balancing allowances and balancing charges

Business tax | Commentary

B3.908 Balancing allowances and balancing charges

Assured tenancy allowances are not available for any expenditure incurred after 31 March 1992, see B3.901.

Where capital expenditure was incurred on a building that is or includes a qualifying dwelling house and any of certain specified events occurs while a dwelling house comprised in the building is a qualifying dwelling house, a balancing adjustment is made to, or on, the person entitled to the relevant interest immediately before that event occurs1. The specified events are:

  1.  

    (a)     the relevant interest in the dwelling house is sold;

  2.  

    (b)     the relevant interest, being a leasehold interest, comes to an end otherwise than when the person entitled to it acquires the interest which is reversionary on it; or

  3.  

    (c)     the dwelling house is demolished or destroyed; or

  4.  

    (d)     without being demolished or destroyed, the dwelling house ceases altogether to be used2.

But no balancing allowance or balancing charge may be made by reason of any event occurring more than 25 years after the dwelling house was first used3.

The following table sets out the

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