517 Dwelling-house not a qualifying dwelling-house throughoutU.K.
(1)This section provides for balancing adjustments where the building was not a qualifying dwelling-house for a part of the relevant period of ownership.
(2)A balancing allowance is made if—
(a)the proceeds from the balancing event are less than the starting expenditure attributable to the dwelling-house, and
(b)the total amount of the relevant allowances in respect of that expenditure is less than the adjusted net cost of the dwelling-house.
(3)The amount of the balancing allowance is the amount of the difference between the adjusted net cost of the dwelling-house and the total amount of the relevant allowances.
(4)A balancing charge is made if the proceeds from the balancing event are equal to or more than the starting expenditure attributable to the dwelling-house.
(5)The amount of the balancing charge is equal to the total amount of the relevant allowances.
(6)A balancing charge is also made if—
(a)the proceeds from the balancing event are less than the starting expenditure attributable to the dwelling-house, and
(b)the total amount of the relevant allowances in respect of that expenditure is more than the adjusted net cost in relation to the dwelling-house.
(7)The amount of the balancing charge is the amount of the difference between the total amount of those allowances and the adjusted net cost.
(8)“The relevant allowances” means—
(a)any initial allowance under paragraph 1 of Schedule 12 to FA 1982, and
(b)any writing-down allowance made for a chargeable period ending on or before the date of the balancing event in question.