Capital Allowances Act 2001 section 388

Acquisition of relevant interest in part of land, etc

Section 388 deals with how balancing adjustments are calculated when a balancing event affects only part of the related agricultural land or only part of an agricultural building, rather than the whole.

• This section applies where a balancing event relates to only part of the agricultural land in which the relevant interest subsisted, or only part of the agricultural building
• The balancing adjustment is calculated by reference to the proportion of the original qualifying expenditure that is properly attributable to the affected part of the land or building
• An apportionment of the qualifying expenditure must be made to isolate the portion relating to the part of the land or building involved in the balancing event
• No writing-down allowance is available for the chargeable period of the balancing event in respect of the apportioned part of the qualifying expenditure that gives rise to the balancing adjustment