Capital Allowances Act 2001 section 519

Recovery of old initial allowances made on incorrect assumptions

Section 519 deals with the recovery of initial allowances originally granted under the Finance Act 1982 for dwelling-houses that, when they come to be used, turn out not to be qualifying dwelling-houses.

• Applies where an initial allowance was granted under the Finance Act 1982 for expenditure on a dwelling-house
• Triggered when the dwelling-house, upon first being used, does not meet the criteria to be a qualifying dwelling-house
• Requires all necessary tax assessments and adjustments to be made to claw back the allowance, even though the original legislation has been repealed
• This is a transitional provision that becomes increasingly unlikely to be needed as time passes