IBA: enterprise zones: buildings straddling zone boundary
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. This phasing out does not apply to EZ WDAs. They continue in full until the cut-off date. There are no IBA writing down allowances for the financial year beginning on 1 April 2011 and subsequent years.
This is how you should deal with an IBA claim on a building that straddles the boundary of an enterprise zone. Where a building straddles the boundary of an enterprise zone give enterprise zone allowances on the part of the building that falls within the zone. You should deal with the part outside the zone under the normal IBA rules.