IBA: relevant interest: tenants in common
Budget 2007 announced a business tax reform package including the gradual withdrawal of IBAs and ABAs over four years. Legislation was introduced in FA08 to give effect to those changes. The phased withdrawal of IBA writing down allowances had effect for chargeable periods ending on or after 1 April 2008 for businesses within the charge to CT and 6 April 2008 for businesses within the charge to IT. There are no IBA writing down allowances for the financial year beginning on 1 April 2011 and subsequent years.
Several people may buy a building as tenants in common. If this happens you should look through to all the tenants in common who have a beneficial interest in the building for the purposes both of assessing the income from the building and giving IBA.