Capital Allowances Act 2001 section 330

Exception for payments more than 7 years after agreement

Section 330 provides an exception to the balancing adjustment rules under section 328 where a payment representing capital value is made more than 7 years after the original agreement to incur qualifying expenditure on a building or structure.

• No balancing adjustment arises where capital value is realised more than 7 years after the qualifying expenditure agreement was entered into (or became unconditional)
• Where an agreement to pay capital value is made within the 7-year window but the actual event or payment occurs after it, the event or payment is treated as falling within the 7-year period, so the exception does not apply
• The 7-year exception is denied where the arrangements under which the relevant interest was acquired require, or make substantially more likely, a subsequent disposal or other capital value event
• Denied events include the subsequent sale of the relevant interest, the grant of an interest in land out of it, or any other event triggering payment of capital value attributable to the subordinate interest