Capital Allowances Act 2001 section 338

Writing off capital value which has been realised

Section 338 deals with writing off the capital value of industrial buildings allowances when that capital value has been realised through a balancing event.

• When a balancing event involving the realisation of capital value occurs, the capital value realised must be written off
• The write-off takes effect at the time the balancing event happens
• The amount written off equals the capital value that has been realised
• This ensures the allowances record accurately reflects that the capital value has already been recovered