A licence is not the same as a lease. A lease creates an
interest in land but a licence does not. Normally a licence does
not give exclusive possession and so it is possible for there to be
several licensees of the same building. For example, one licensee
may have the right to use the building in the morning on weekdays,
another the right to use it on weekday afternoons and a third at
weekends. A building used by several licensees qualifies for IBA
provided each licensee uses the building for the purposes of a
qualifying trade.
If some licensees use the building for qualifying trades
while others do not then IBA will be due on any part of the
building that is used exclusively for the purposes of qualifying
trades.
