SE36670 - Deductions from emoluments: capital allowances - calculation of the allowances due - balancing allowances and charges - when they arise

Section 65 CAA 2001 (previously, Section 24 CAA 1990)

A balancing allowance or a balancing charge will normally have to be made where an employee has been given capital allowances on an item of machinery or plant used in the performance of his or her duties and they subsequently

• sell or otherwise dispose of the machinery or plant or
• cease to use it in the employment because the employment ends or
• permanently ceases to use it in the performance of the duties of the employment.

As regards the calculation of the allowance, or charge, see SE36680.