CA86500 - Assured Tenancy Allowances: Balancing adjustments

CAA01/S513 - S515

A balancing adjustment is a balancing allowance or a balancing charge. There is a balancing adjustment if there is a balancing event. There is no balancing adjustment if a balancing event occurs more than 25 years after the dwelling house was first used.

A balancing event is any one of the following:

• the sale of the relevant interest,
• the transfer of the relevant interest,
• the ending of a leasehold interest unless the person holding the leasehold interest acquires the interest which is reversionary on it,
• the dwelling house ceases to be a qualifying dwelling house,
• the dwelling house is demolished or destroyed,
• the dwelling house ceases altogether to be used.

Do not treat a dwelling house as ceasing altogether to be used if it falls temporarily out of use. You should not accept that a dwelling house has ceased altogether to be used unless it is not fit for use for any purpose.

These are the proceeds from balancing events.