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The Industrial Buildings Allowance (IBA) came into effect in 1945 as part of the Income Tax Act. This gave companies tax relief on the cost of creating a building for manufacturing or processing. This was later expanded to include structures like bridges, tunnels and walls. The scheme gave projects tax relief for up to 25 years after their initial construction.
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Industrial Buildings Allowance A Quick Guide to Industrial Buildings Allowance (IBA)
Infrastructure projects are often at the forefront of economic strategies. In 2016, the British government published the National Infrastructure Delivery Plan. It pledged over £100bn in government funding for infrastructure from 2016 to 2021. This isn’t the first time that the British government has supported infrastructure projects. In 1945, the government decided to help lower the cost of construction for businesses. After the Second World War, industry was key to rebuilding and powering the country into a new era. https://www.areande.com/industrial-buildings-allowance/
The Industrial Buildings Allowance (IBA) came into effect in 1945 as part of the Income Tax Act. This gave companies tax relief on the cost of creating a building for manufacturing or processing. This was later expanded to include structures like bridges, tunnels and walls. The scheme gave projects tax relief for up to 25 years after their initial construction. It may have ended in 2008, but it wasn’t the last government incentive for infrastructure. Businesses can still claim a form of tax relief based on this building work, such as the Structures and Buildings Allowance (SBA) https://www.areande.com/industrial-buildings-allowance/
Infrastructure projects are often at the forefront of economic strategies. In 2016, the British government published the National Infrastructure Delivery Plan. It pledged over £100bn in government funding for infrastructure from 2016 to 2021. This isn’t the first time that the British government has supported infrastructure projects. In 1945, the government decided to help lower the cost of construction for businesses. After the Second World War, industry was key to rebuilding and powering the country into a new era. The Industrial Buildings Allowance (IBA) came into effect in 1945 as part of the Income Tax Act. This gave companies tax relief on the cost of creating a building for manufacturing or processing. This was later expanded to include structures like bridges, tunnels and walls. The scheme gave projects tax relief for up to 25 years after their initial construction. It may have ended in 2008, but it wasn’t the last government incentive for infrastructure. Businesses can still claim a form of tax relief based on this building work, such as the Structures and Buildings Allowance (SBA).
What replaced the Industrial Buildings Allowance? The SBA came into force in 2018 and applies to the costs of new structures and buildings incurred on or after 29th October 2018. To claim, the buildings must not be for residential use. Under the SBA, companies can claim tax relief at 3% of expenditure over 33 and a third years. Businesses have to identify a ‘chargeable period’, the time for which they claim the tax credit. This period has to fall after the latter of these dates: The date that your business started using the building The date the expenditure happened
The SBA includes many things that were covered by the Industrial Buildings Allowance, such as: Walls Bridges and tunnels Warehouses Factories If the structure gets sold, the new owner can claim tax allowances under the scheme. The first owner has to provide an allowance statement to all future owners otherwise the government assumes that there is no qualifying expenditure. As long as you keep these up to date, you should have no trouble making a claim. https://www.areande.com/industrial-buildings-allowance/
