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:
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.
|Sale of the relevant interest||Net sale proceeds|
|Transfer of the relevant interest||Market value|
|Dwelling house ceases to be a qualifying dwelling house||Market value|
|Demolition or destruction||Net amount received for the remains plus any insurance money received and any other capital compensation received|
|Dwelling house becomes unfit for use||Any capital compensation received|