EIM36670 - Deductions from earnings: capital allowances: calculation of the allowances due: balancing allowances and charges: when they arise

Section 65 CAA 2001

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
• cease to use it in the employment because the employment ends
• permanently cease to use it in the performance of the duties of the employment

As regards the calculation of the allowance or charge, see EIM36680.