Industrial Building Allowance - Help Please!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello

could somebody help me out with this IBA question as follows:

IN year 1, Brick & co had a factory built, with the following costs:

Production Office £200,000
Workshops £990,000
Land £300,000
Admin. Office £225,000
Factory Shop £200,000

In year 4 the factory was sold for £1,000,000

Please calculate:

.IBA available to original buyer
.Balancing adjustment
.IBA available to second buyer

If anyone could help me with this question, it would be most appreciated

Thanks

Steven

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Industrial Building Allowance - Help Please!!

    Hi Steven, I will help you with this question, what do you need help with?

    What a good question to!

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Industrial Building Allowance - Help Please!!

    hello dean, i need help with all of it if you can

    regards

    steven
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Industrial Building Allowance - Help Please!!

    Ok, taking the question step by step...

    1. "IBA available to original buyer"

    First of all you need to estabilsh, what from your list is "qualifying expenditure" from there you can go on to compute the IBA's available to the current owner.

    What do you think the qualifying expenditure is?

    Regards

    Dean

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