Capital Allowances Act 2001 section 360N

Balancing events

Section 360N defines the specific events that trigger a balancing adjustment in relation to business premises renovation allowances on a qualifying building.

• A balancing event occurs when the relevant interest in the qualifying building is sold, or when a long lease is granted out of that interest in return for a capital sum.
• A balancing event also arises if the relevant interest is a lease and that lease comes to an end, unless this happens because the leaseholder acquires the reversionary interest above it.
• The death of the person who originally incurred the qualifying expenditure, or the demolition or destruction of the qualifying building, each constitute a balancing event.
• A balancing event is triggered if the qualifying building simply ceases to be qualifying business premises, even though it has not been demolished or destroyed.