Section 360P | Calculation of balancing adjustments ^F1

(1)A balancing allowance is made if—

(a)there are no proceeds from the balancing event, or

(b)the proceeds from the balancing event are less than the residue of qualifying expenditure immediately before the event.

(2)The amount of the balancing allowance is the amount of—

(a)the residue (if there are no proceeds);

(b)the difference (if the proceeds are less than the residue).

(3)A balancing charge is made if the proceeds from the balancing event are more than the residue, if any, of qualifying expenditure immediately before the event.

(4)The amount of the balancing charge is the amount of—

(a)the difference, or

(b)the proceeds (if the residue is nil).

(5)The amount of a balancing charge made on a person must not exceed the total amount of—

(a)any initial allowances made to the person in respect of the expenditure, and

(b)any writing-down allowances made to the person in respect of the expenditure for chargeable periods ending on or before the date of the balancing event giving rise to the balancing adjustment.