Capital Allowances Act 2001 section 380

When balancing adjustments are made

Section 380 sets out when a balancing adjustment arises in relation to agricultural buildings allowances and to whom it is made.

• A balancing adjustment arises where qualifying expenditure has been incurred and a balancing event occurs during a period in which the person would otherwise receive a writing-down allowance.
• The balancing adjustment takes the form of either a balancing allowance (giving further tax relief) or a balancing charge (clawing back earlier relief).
• The adjustment is made for the chargeable period in which the balancing event takes place.
• The allowance or charge is given to, or imposed on, the person who held the relevant interest in the qualifying expenditure immediately before the balancing event occurred.