Industrial Buildings Allowance

jilbo Registered Posts: 197 Dedicated contributor 🦉
Wonder if anyone can help me with IBA as I'm getting conflicting info.

My understanding was that if an industrial building was sold and continued the same use then the pruchaser continued to claim the same WDA as the seller, ie 4% of the original purchase price that the seller paid, for the rest of it's tax life.

I have now read that if a building is sold for an amount lower than the original cost, it is the amount paid by the purchaser that is used to calculate the IBA: confused1:

Really need to know which is correct as I'm sitting both tax exams next week!!

Good luck to everyone else sitting exams.


  • jilbo
    jilbo Registered Posts: 197 Dedicated contributor 🦉
    Sorry guys forget my previous post, I've just find out that I was correct in the first place, it's always based on the original purchase price - the extra notes our tutor has given us are out of date!!!
  • kevinb
    kevinb Registered Posts: 8 New contributor 🐸
    Thank you so much. The same thing has been troubling me since I did a past paper this morning :thumbup::thumbup:

    Now I can sleep peacefully........

    If only I could get my head round marginal relief......
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