Commentary on Sections Glossary History Section 317: Balancing event where hotel not qualifying hotel for 2 years
1084.This section is based on part of section 7(1) and sections 6(3) and 7(2) of CAA 1990. It provides an additional balancing event for what was previously a qualifying hotel. This occurs if for a period of two years it is no longer a qualifying hotel. “Qualifying hotel” is defined in section 279.
1085.Subsection (1) sets out the circumstances in which the balancing event arises.
1086.Subsection (2) contains provisions for the application of balancing adjustments by treating the event as a sale with proceeds equal to the market value of the building.
1087.Subsections (3) and (4) provide that the general rule in section 285 about temporary disuse applies for up to two years in which the building is not a qualifying hotel but not beyond that period.
1088.Subsection (5) provides that this section does not apply to qualifying enterprise zone expenditure.