IBA: enterprise zones: modifications to normal rules
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.
Most of the legislation in CAA01 Part 3 Chapter 2 about the meaning of industrial building does not apply to buildings in enterprise zones. The only sections, apart from CAA01/S281 (meaning of commercial building CA37200), which apply are CAA01/S283 about the 25% disregard CA32700, CAA01/S284 (2) about ‘industrial estates’ CA32340 and CAA01/S285 about temporary disuse CA32800.
The legislation about qualifying hotels which require a deemed sale after 2 years in which the hotel is not a qualifying hotel, does not apply to buildings in enterprise zones. That means that where a qualifying hotel has qualified for enterprise zone allowances there is not a deemed sale after 2 years in which it is not a qualifying hotel.