Readers’ forum: Do balancing charges get cancelled?

My client’s company sold its trade and assets 18 months ago in an arm’s length sale to an unconnected company.

This triggered a balancing charge on pooled assets. For various reasons the trade was not a good fit with the new owner’s group and so my client’s company has been offered the opportunity to buy it back – again at an arm’s length price.

I’m trying to understand the capital allowances position. CTA 2010 s 941 deals with transfers of trade and seems to imply that where within two years of the transfer the trade is under the same ownership as it was before the transfer the trade is treated as continuing and no balancing adjustments are required.

Does that mean that I have to go back to the computation at the time of the original disposal and revised on the basis that capital allowances continue as...