Capital Allowances Act 2001 section 316

Proceeds from main balancing events

Section 316 defines what counts as the "proceeds" for each of the four main balancing events listed in section 315(1), which are needed to calculate any balancing allowance or balancing charge.

• When the relevant interest in a building is sold, the proceeds are the net sale proceeds received or receivable by the person concerned.
• When a building is demolished or destroyed, the proceeds include the net amount received for the remains, plus any insurance money and any other capital compensation received.
• When a building ceases altogether to be used, the proceeds are any capital compensation received in respect of that event.
• When a foreign concession ends, the proceeds are any compensation payable in respect of the relevant interest.