There is a balancing adjustment if there is a balancing event
within 7 years of the first use of the building. A
balancing adjustment is a balancing allowance or
balancing charge. It is made to or on the person who incurred the
qualifying expenditure and is made for the chargeable period in
which the balancing event occurs.
If there is more than one balancing event within 7 years of the first use of the building, a balancing adjustment is only made on the first one.
A balancing event is
If a balancing event occurs more than 7 years after the first
use of the building there is not a balancing adjustment.
Cass buys a warehouse situated in a disadvantaged area that has been unused for 3 years and converts it into a hotel. She brings it into use immediately and claims 100% initial allowance. If she sells the hotel 8 years later the sale is a balancing event but there is no balancing adjustment because the sale is more than 7 years after the first use of the building.