CA39410 - IBA: how allowances and charges are made: trades
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. »Ê¹ÚÌåÓýappre are no IBA writing down allowances for the financial year beginning on 1 April 2011 and subsequent years.
CAA01/S352
IBA is normally made to traders. Where a person carries on a trade, treat allowances as expenses of that trade and charges as trade receipts.
Buildings in enterprise zones may be in use for a trade, profession or vocation. Treat enterprise zone allowances as expenses and charges as receipts of the trade, profession or vocation.