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HMRC internal manual

Capital Allowances Manual

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HM Revenue & Customs
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IBA: miscellaneous: requisitioned land

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.

CAA01/S358

Sometimes the Crown requisitions land. If it does it is treated for IBA purposes as if it had been in possession of that land by virtue of a lease during the period of requisition.

Someone who is authorised by the Crown to occupy the land during the period of requisition is treated as if the Crown had granted them a sublease.

The person who is entitled to possession of the land apart from the Crown’s rights over the land may pay the Crown for a building constructed on the land during the period of requisition. If they do the payment is treated as if it were made in consideration of the surrender of the sublease.