»Ê¹ÚÌåÓýapp

Budget 2007 announced a business tax reform package including the gradual withdrawal of IBAs and ABAs over four years. Legislation was introduced in FA08 to give effect to those changes. »Ê¹ÚÌåÓýapp phased withdrawal of IBA writing down allowances had effect for chargeable periods ending on or after 1 April 2008 for businesses within the charge to CT and 6 April 2008 for businesses within the charge to IT. This phasing out does not apply to EZ WDAs. »Ê¹ÚÌåÓýappy continue in full until the cut-off date. »Ê¹ÚÌåÓýappre are no IBA writing down allowances for the financial year beginning on 1 April 2011 and subsequent years.

CAA01/S310 (1)(a), FA08/S82

»Ê¹ÚÌåÓýapp annual rate of WDA is 25% for the person who constructed the building or bought it unused.

FA08 phases out IBAs. This phasing out does not apply to EZ WDAs. »Ê¹ÚÌåÓýappy continue in full until the cut-off date. »Ê¹ÚÌåÓýapp cut-off date is 1 April 2011 (CT) or 6 April 2011 (IT). »Ê¹ÚÌåÓýappy stop on that date.

You may have a chargeable period that crosses the cut-off date. If so the WDA for that chargeable period is

DCPB x WDA divided by

DCP

Where DCPB = number of days in the chargeable period before the cut-off date

DCP = number of days in the chargeable period

WDA = the WDA that would have been made for the chargeable period before the introduction of the FA08 legislation. Where a person buys a used building in an enterprise zone the WDA is based on the residue of qualifying expenditure after sale in the normal way CA34600.