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.
|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|