Capital Allowances Act 2001 section 381

Balancing events (on making an election)

Section 381 defines the specific events that can trigger a balancing adjustment for agricultural buildings allowances, but only where the taxpayer chooses to make an election for this treatment.

• A balancing event only arises if the taxpayer makes a formal election under section 382 — it does not happen automatically
• One qualifying event is where the relevant interest in the agricultural building is acquired by another person
• A second qualifying event is where the agricultural building is demolished or destroyed
• A third qualifying event is where the agricultural building ceases altogether to be used, even though it has not been demolished or destroyed