Capital Allowances Act 2001 section 318

Building an industrial building etc throughout

Section 318 deals with how balancing adjustments are calculated when a building has been used as an industrial building or for research and development throughout the entire relevant period of ownership.

• A balancing allowance arises where there are no proceeds from the balancing event, or where the proceeds are less than the residue of qualifying expenditure immediately before the event
• The balancing allowance equals the full residue (if no proceeds) or the shortfall of proceeds below the residue
• A balancing charge arises where the proceeds from the balancing event exceed the residue of qualifying expenditure immediately before the event
• The balancing charge equals the excess of proceeds over the residue, or the full proceeds if the residue is nil