Capital Allowances Act 2001 section 429

Buildings etc for benefit of employees abroad ceasing to be used

Section 429 deals with the circumstances in which a balancing allowance arises when buildings or works provided for the benefit of employees abroad permanently cease to be used in connection with a mineral extraction trade.

• Applies where qualifying expenditure was incurred on contributions to buildings or works for the benefit of employees abroad under section 415
• A balancing allowance is triggered when those buildings or works permanently cease to be used for the mineral extraction trade
• The balancing allowance covers the remaining unrelieved qualifying expenditure for the relevant chargeable period
• This provides a mechanism to recover outstanding capital allowances when the asset is no longer in qualifying use