Inland Revenue.
[CAP. 112
44
Schedule.
(a) the relevant interest in the building or structure is sold; or
(b) that interest, being a leasehold interest, comes to an end otherwise than on the person entitled thereto acquiring the interest which is reversionary thereon; or
(c) the building or structure is demolished or destroyed or, without being demolished or destroyed, ceases altogether to be used,
an allowance or charge, to be known as a "balancing allowance" or a "balancing charge" shall, in the circumstances mentioned in this section, be made to or, as the case may be, on the person entitled to the relevant interest immediately before that event occurs for the year of assessment in his basis period for which that event occurs: Provided that no balancing allowance or balancing charge shall be made to or on any person for any year of assessment by reason of any event occurring after the end of the basis period for the year of assessment which is the fiftieth year after the year in which the building or structure was first used.
(2) Where there are no sale, insurance, salvage or compensation moneys, or where the residue of the expenditure immediately before the event exceeds those moneys, a balancing allowance shall be made and the amount thereof shall be the amount of the said residue or, as the case may be, of the excess thereof over the said moneys.
(3) If the sale, insurance, salvage or compensation moneys exceed the residue, if any, of the expenditure immediately before the event, a balancing charge shall be made and the amount on which it is made shall be an amount equal to the excess or, where the residue is nil, to the said moneys.
(4) Notwithstanding anything in the last preceding subsection, in no case shall the amount on which a balancing charge is made on a person exceed the aggregate of the following amounts, that is to say-
(a) the amount of the initial allowance, if any, made to him in respect of the expenditure in question;
319
Inland Revenue.
[CAP. 112
44
Schedule.
(a) the relevant interest in the building or structure is 30 of 1950,
sold; or
(b) that interest, being a leasehold interest, comes to an end otherwise than on the person entitled thereto acquiring the interest which is reversionary thereon;
or
(c) the building or structure is demolished or destroyed or, without being demolished or destroyed, ceases altogether to be used,
an allowance or charge, to be known as a "balancing allowance" or a "balancing charge" shall, in the circums- tances mentioned in this section, be made to or, as the case may be, on the person entitled to the relevant interest
occurs for the immediately before that event
of year assessment in his basis period for which that event occurs : Provided that no balancing allowance or balancing charge. shall be made to or on any person for any year of assessment by reason of any event occurring after the end of the basis period for the year of assessment which is the fiftieth year after the year in which the building or structure was first used.
(2) Where there are no sale, insurance, salvage or compensation moneys, or where the residue of the expenditure immediately before the event exceeds those moneys, a balancing allowance shall be made and the amount thereof shall be the amount of the said residue or, as the case may be, of the excess thereof over the said moneys.
(3) If the sale, insurance, salvage or compensation moneys exceed the residue, if any, of the expenditure immediately before the event, a balancing charge shall be made and the amount on which it is made shall be an amount equal to the excess or, where the residue is nil, to the said moneys.
(4) Notwithstanding anything in the last preceding subsection, in no case shall the amount on which a balancing charge is made on a person exceed the aggregate of the following amounts, that is to say-
(a) the amount of the initial allowance, if any, made to him in respect of the expenditure in question;
319
M
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