Capital Allowances Act 2001 section 383

Proceeds from balancing events

Section 383 defines what counts as the "proceeds" from each type of balancing event for agricultural buildings allowance purposes.

• When a relevant interest is sold, the proceeds are the net sale proceeds; when a lease ends and the incoming lessee pays the outgoing lessee, the proceeds are the net amount of that payment.
• When an agricultural building is demolished or destroyed, the proceeds include the net amount received for the remains plus any insurance money and any other capital compensation received.
• When an agricultural building ceases altogether to be used, the proceeds are any capital compensation received in connection with that event.
• In all cases, the proceeds are those received or receivable by the specific person whose entitlement to a balancing allowance or liability to a balancing charge is being determined.