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HMRC internal manual

Capital Allowances Manual

HM Revenue & Customs
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IBA: Qualifying trade: Building used by more than one licensee


A licence is not the same as a lease. A lease creates an interest in land but a licence does not. Normally a licence does not give exclusive possession and so it is possible for there to be several licensees of the same building. For example, one licensee may have the right to use the building in the morning on weekdays, another the right to use it on weekday afternoons and a third at weekends. A building used by several licensees qualifies for IBA provided each licensee uses the building for the purposes of a qualifying trade.

If some licensees use the building for qualifying trades while others do not then IBA will be due on any part of the building that is used exclusively for the purposes of qualifying trades.