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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
Updated
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IBA: Qualifying expenditure: Cost of land does not qualify for IBA

CAA01/S272 (1)

Expenditure incurred on the acquisition of land does not qualify for IBA nor does expenditure incurred on the acquisition of rights in, or over, land.

If a person buys land and builds an industrial building on it the cost of the land does not qualify for IBA. If a person buys an industrial building the part of the cost that relates to the land on which the building stands does not qualify for IBA.