IBA rates on second hand buildings

IBA rates on second hand buildings

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We are all aware that the rate for claiming IBA's has reduced from 4% to 3%. However my client is a second hand buyer claiming a WDA on the reside of expenditure over the remaining industrial life. This means we have been claiming at, more like 10%, since 10 years of indutrial life remained.

How does the rate that I have been applying change with the new Finance Act?
Victoria McGowan

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By User deleted
19th Jun 2008 12:40

It is 3% and it isn't 3%
The draft legislation doesn't specify that the rate of IBA's is 3% it talks about phasing out by reducing the allowances available to 75% for periods from 01/04/08, 50% from 01/04/09, 25% from 01/04/10 and 0% from 01/04/11.

So effectively it is 3% but in a round about way. My understanding is, therefore, that in your situation the rate to use from 01/04/08 would be 7.5%, then 5% then 2.5% then 0%

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