Capital Allowances Act 2001 section 393I

Flat not qualifying flat or relevant interest sold before flat first let

Section 393I deals with the situation where a flat either fails to qualify for business premises renovation allowance or the relevant interest in the flat is sold before the flat is first let, requiring a balancing adjustment.

• If a flat that was expected to qualify for business premises renovation allowance turns out not to be a qualifying flat, a balancing event is triggered and an adjustment must be made.
• Similarly, if the relevant interest in the flat is sold before the flat is first let as a qualifying flat, a balancing event also arises.
• In either case, the proceeds for the purposes of calculating the balancing adjustment are treated as nil, meaning the full amount of allowances previously given is clawed back.
• This provision was amended by Finance Act 2012, Schedule 39, paragraph 37.

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