Section 313A Calculation of allowance after sale of relevant interest: anti-avoidance
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Amendments
Section 313A inserted by Finance Act 2008 section 87(1) in relation to the sale of a relevant interest on or after 12 March 2008 except for such a sale in pursuance of a relevant pre-commencement contract.
(1) This section applies where—
(a) there is a sale of the relevant interest in the building which is a balancing event to which section 314 applies,
(b) the buyer and seller have different chargeable periods,
(c) the control test (within the meaning of section 567) is met, and
(d) the purpose, or one of the main purposes, of the sale is the obtaining of a tax advantage by the buyer under this Part.
(2) The writing-down allowance to which the buyer is entitled for the chargeable period in which the sale takes place is—
DI x WDA
CP
where—
DI is the number of days in the chargeable period for which the buyer is entitled to the relevant interest,
CP is the number of days in the chargeable period, and
WDA is the writing-down allowance to which the buyer would be entitled apart from this section.
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