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.
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.
0
Comments
-
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in the first place, it's always based on the original purchase price - the extra notes our tutor has given us are out of date!!!0
-
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......0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership