Not all buildings in use for a qualifying trade qualify for IBA. A building in use as, or as part of, or for purposes ancillary CA32313 to, any of the following does not qualify for IBA even if it is also in use for the purposes of a qualifying trade:
This rule does not apply to some buildings provided for workers
employed on foreign plantations or in mineral extraction
CA32330.
Normally, where there is mixed use of a building, that is
where the building is used for different purposes and all parts of
the building are used for those different purposes, you should give
IBA provided that the use for the purposes of a qualifying trade is
not negligible
CA32315. This does not apply when one of
the uses is excepted use. Any use of a building for the purposes of
a retail shop etc. prevents IBA being given no matter how small the
excepted use is.
This rule does not stop IBA being given where there are
separate parts of a building, some of which are used for an
excepted use and some of which are not. In that case you should
look at each part individually, using the legislation that says
building includes part of a building. If the use of one part is
excepted use, that part does not qualify for IBA but its excepted
use does not stop the other parts of the building qualifying for
IBA if they are used for a qualifying trade. If the expenditure on
constructing the part in excepted use is less than 25% (previously
10%) of the total construction expenditure and the rest of the
building is used for a qualifying trade the whole building will
qualify for IBA,
CA32700.
