Taxes Consolidation Act 1997 section 669C

Effect of sale of quota

Section 669C (now repealed) provided for balancing adjustments — balancing allowances or balancing charges — where a milk quota was sold, came to an end, or ceased to be used before the end of the writing down period.

• Where a qualifying quota was sold, ended, or ceased to be used before the writing down period expired, no further writing down allowances were given from that point on.
• A balancing allowance arose where the quota ended, ceased to be used, or was sold for less than the remaining unallowed expenditure — the allowance equalled the shortfall between the unallowed expenditure and any net sale proceeds.
• A balancing charge arose where all or part of the quota was sold for more than the remaining unallowed expenditure — the charge equalled the excess of the net sale proceeds over the unallowed expenditure.
• Where only part of the quota was sold without triggering a balancing charge, the remaining unallowed expenditure was reduced by the sale proceeds and the balance was spread equally over the remaining complete years of the writing down period.