Capital Allowances Act 2001 section 521

Starting expenditure

Section 521 defines the starting expenditure attributable to a dwelling-house, which is used when calculating balancing adjustments under the assured tenancy allowances regime.

• Where the person facing the balancing allowance or charge is the original spender, the starting expenditure equals the full qualifying expenditure attributable to the dwelling-house.
• Where a subsequent owner faces the balancing event, the starting expenditure is the residue of qualifying expenditure at the start of their period of ownership.
• If demolition costs apply under section 528, the starting expenditure is increased by the net cost of that demolition.
• The starting expenditure figure feeds into the section 517 calculation for dwelling-houses that were not qualifying dwelling-houses throughout the relevant period.