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HMRC internal manual

Capital Allowances Manual

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HM Revenue & Customs
Updated
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IBA: highway undertakings: balancing adjustments

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.

Where a highway concession is brought to or comes to an end without being extended, there is a balancing event.

The proceeds from that balancing event are any insurance moneys or other compensation that the concession holder receives in respect of qualifying expenditure on construction of the road so far as they consist of capital sums.