Capital Allowances Act 2001 section 314

When balancing adjustments are made

Section 314 sets out the circumstances in which a balancing adjustment arises in respect of industrial buildings allowances, including who receives the adjustment, the time limit, and the rule preventing duplication.

• A balancing adjustment (either an allowance or a charge) is triggered when a balancing event occurs in relation to a building on which qualifying expenditure has been incurred, whether the building is still an industrial building or has ceased to be one.
• The adjustment is made for the chargeable period in which the balancing event takes place, and it falls on the person who held the relevant interest in the building immediately before that event.
• No balancing adjustment can arise if the balancing event occurs more than 25 years after the building was first used.
• Where the building is no longer an industrial building and more than one balancing event occurs during that non-industrial period, only the first event triggers a balancing adjustment, preventing double allowances or charges.