Capital Allowances Act 2001 section 315

Main balancing events

Section 315 sets out the main circumstances (known as balancing events) that trigger a balancing adjustment for industrial buildings allowances.

• A balancing event occurs when the relevant interest in the building is sold, the building is demolished, destroyed, or permanently ceases to be used.
• Where the relevant interest is a lease, a balancing event occurs if the lease ends — unless the leaseholder acquires the superior (reversionary) interest at the same time.
• If the relevant interest depends on a foreign concession (a right or privilege granted by an overseas government or authority), a balancing event occurs when that concession comes to an end.
• Additional balancing events can arise in specific situations, including enterprise zone capital value realisations, highway concession endings, VAT rebate adjustments, and hotels that fail to qualify as such for two years.