Commentary on Sections Glossary Structure of Part 4 Overview
1299.This Chapter provides balancing adjustments. These are only made if there is an election for a balancing adjustment:
	on a sale, by both buyer and seller; or
	on the destruction or demolition of a building, by the owner.
1300.A balancing adjustment is either a balancing allowance or a balancing charge depending on whether the residue of qualifying expenditure is more or less than the proceeds from the balancing event.
1301.Section 380 gives the basic rules for when a balancing adjustment is made and how.
1302.Section 381 defines events which are balancing events if an election is made. Section 382 provides how elections are made.
1303.Sections 383 and 384 give the proceeds from a balancing event.
1304.Section 385 gives the basic rule for the calculation of a balancing adjustment. It is the difference between the proceeds and the residue of qualifying expenditure.
1305.Section 386 defines “the residue of qualifying expenditure”. It is broadly the net amount of qualifying expenditure not yet relieved.
1306.Section 387 caps a balancing charge at the amount of allowances previously given.
1307.Section 388 provides for balancing events in relation to part of a building or part of the related agricultural land.
1308.Sections 389 and 390 restrict balancing allowances in certain transactions involving connected persons or if allowances are the sole or main benefit.