Industrial buildings allowances

Industrial buildings allowances

? Eligible assets:
? Factories
? Ancillary buildings eg warehouses
? Canteens
? Offices if < 25% of eligible total
IBAs – eligible expenditure
? NOT LAND
? But land preparation is OK
? Cost of building factory
? Price paid if bought unused from builder
? If not bought from builder, lower of
– Price paid for building
– Cost of building’s construction
IBAs – computation
? Add up eligible costs
? IBA = WDA on straight line basis
? 2% 2009/10
? 1% 2010/11
? Pro-rated if a/c period not 12 months
? IBAs start in period building first used as industrial
? Cannot claim for non-industrial periods
IBAs – computation
? Example
? New factory constructed
? Land cost £1m
? Foundations £500,000
? Architect £80,000
? Building costs £2m
? Including offices £300,000

IBAs – disposals
? If building sold that was always industrial
? And still within tax life (25 years)
? No WDA in period of disposal
? Balancing allowance instead, ie building’s WDV less proceeds

IBAs – disposals
? If building sold was sometimes non-industrial

? READ THE BOOK PAGE

Essay writing assist:論文代寫

2015-01-18T20:41:00+00:00 June 17th, 2014|講義|