Corporation Tax Act 2010 section 919

Cases where expenditure taken into account under other provisions of CAA 2001

Section 919 deals with the clawback of capital allowances, by way of a balancing charge, where a lessor has received allowances under provisions of the Capital Allowances Act 2001 other than those covering plant and machinery, mineral extraction, or patents, and a relevant occasion (such as a major lump sum payment) arises in connection with the leased asset.

• This section applies where the current lessor has received capital allowances on the leased asset under any part of the Capital Allowances Act 2001 other than the plant and machinery, mineral extraction, or patent allowance regimes.
• Where the section applies, a balancing charge arises on the lessor in the chargeable period in which the relevant occasion falls.
• The amount of the balancing charge is the lower of the total unrecovered allowances previously given and the amount or value of the major lump sum.
• The term "chargeable period" takes its meaning from section 6 of the Capital Allowances Act 2001.