»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/S301

Used buildings:

• do not qualify for initial allowance, and
• qualify for WDA based on the residue of qualifying expenditure after sale spread over the rest of the 25 year writing down period.

unless they are bought within 2 years of first use. A person who is the first one to buy a used building in an enterprise zone within 2 years of first use is treated as buying an unused building. This means that the allowances are based on a new amount of qualifying expenditure and that an initial allowance of 100% or WDA at the 25% rate is available.

Where a person buys a used building in an enterprise zone within 2 years of first use calculate a balancing adjustment for the seller in the usual way.

A taxpayer who buys any other type of used building in an enterprise zone cannot claim the 25% rate of WDA. WDA is based on the residue of qualifying expenditure after sale in the normal way CA34600.