»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.

All of the following conditions must be satisfied for the realisation of capital value legislation to apply:

1. the qualifying expenditure must have qualified for enterprise zone allowances
2. capital value is paid which is attributable to a subordinate interest to which the relevant interest is or will be subject
3. the payment is made not more than 7 years after the making of the agreement under which the qualifying expenditure is incurred

If the agreement for the qualifying expenditure was conditional the time limit in (c) above is 7 years from the time that the agreement became unconditional.

»Ê¹ÚÌåÓýapp legislation applies to payments of capital value made after the 7-year time limit has expired where those payments are made under an agreement made before expiry of the 7-year time limit.

It also applies to payments made after expiry of the 7-year time limit under a conditional agreement to pay capital value made before expiry of the 7-year time limit which becomes unconditional before that date.

In some cases the 7-year time limit is abolished altogether CA37760.