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CAA01/S417 sets out the occasions on which a balancing allowance rather than a writing down allowance is due.

Such allowances are given on all relieved qualifying expenditure for the chargeable period related to the permanent discontinuance of a trade of mineral extraction.

A balancing charge will arise:

• where a disposal receipt is brought into account, and
• that receipt exceeds the balance of unrelieved qualifying expenditure on that asset.

»Ê¹ÚÌåÓýapp provisions in CAA01/S417 indicate that the balancing charge takes account of:

• the original qualifying expenditure,

and

• all previous allowances and disposal receipts,

and

• any other balancing charges relating to that expenditure.

»Ê¹ÚÌåÓýapp amount of the balancing allowance is the whole of the amount by reference to which writing down allowances on the asset would otherwise be given.