Capital Allowances Act 2001 section 360M

When balancing adjustments are made

Section 360M sets out the circumstances in which a balancing adjustment arises under the business premises renovation allowances regime, including the time limit within which a balancing event must occur.

• A balancing adjustment arises where qualifying expenditure has been incurred on a qualifying building and a balancing event occurs
• The adjustment takes the form of either a balancing allowance or a balancing charge, made for the chargeable period in which the balancing event takes place
• No balancing adjustment is made if the balancing event occurs more than 5 years after the premises were first used, or first suitable for letting, as qualifying business premises
• Where more than one balancing event occurs, only the first event triggers a balancing adjustment