Section 313A | Calculation of allowance after sale of relevant interest: anti-avoidance ^F1F2

From legislation.gov.uk

(1)This section applies where—^F1F2

(a)there is a sale of the relevant interest in the building which is a balancing event to which section 314 applies,^F1F2

(b)the buyer and seller have different chargeable periods,^F1F2

(c)the control test (within the meaning of section 567) is met, and^F1F2

(d)the purpose, or one of the main purposes, of the sale is the obtaining of a tax advantage by the buyer under this Part.^F1F2

(2)The writing-down allowance to which the buyer is entitled for the chargeable period in which the sale takes place is—^F1F2

Formula

\frac{DI}{CP} \times WDA

where—

DI is the number of days in the chargeable period for which the buyer is entitled to the relevant interest,

CP is the number of days in the chargeable period, and

WDA is the writing-down allowance to which the buyer would be entitled apart from this section.