Capital Allowances Act 2001 section 515

Proceeds from balancing events

Section 515 defines how to determine the proceeds figure to use when calculating a balancing adjustment following a balancing event in relation to a flat conversion allowance.

• Where the relevant interest in a property is sold, the proceeds are the net sale proceeds received or receivable by the person concerned.
• Where the dwelling-house is demolished or destroyed, the proceeds include the net amount received for the remains, any insurance money, and any other capital compensation received.
• Where the dwelling-house ceases altogether to be used, the proceeds are any capital compensation received in respect of that event.
• In all cases, the amounts taken into account are those received or receivable by the person whose entitlement to a balancing allowance or liability to a balancing charge is being determined.