Capital Allowances Act 2001 section 319

Building not an industrial building etc. throughout

Section 319 deals with how balancing adjustments are calculated when a building was not used as an industrial building or for research and development for part of the owner's relevant period of ownership.

• Where proceeds from a balancing event are less than the starting expenditure and net allowances are less than the adjusted net cost, a balancing allowance equal to the difference between the adjusted net cost and net allowances is given
• Where proceeds from a balancing event equal or exceed the starting expenditure, a balancing charge equal to the full amount of net allowances made is imposed
• Where proceeds are less than the starting expenditure but net allowances exceed the adjusted net cost, a balancing charge equal to the difference between net allowances and the adjusted net cost is imposed
• Key defined terms used in the calculation include "starting expenditure" (section 322), "net allowances" (section 324), "adjusted net cost" (section 323), and "relevant period of ownership" (section 321)