CA34050 - IBA: Initial allowance: Conditions

CAA01/S305 - S306

Initial allowances are not generally available. They are available to persons who incur qualifying expenditure on industrial and commercial buildings in enterprise zones CA37000 and they were available for expenditure on constructing industrial buildings in the year ended 31 October 1993 CA34300.

Initial allowance is made to a person who incurs qualifying expenditure on a building which is to be an industrial building occupied for the purposes of a trade (or profession or vocation or an office, where qualifying enterprise zone expenditure is concerned) carried on either by that person or by a lessee or a licensee.

Initial allowance is made for the chargeable period in which the qualifying expenditure is incurred unless the qualifying expenditure is pre-trading expenditure. In that case an initial allowance is made for the chargeable period in which the trade (or profession or vacation, for qualifying enterprise zone expenditure) begins.

A person may claim less than the full amount of an initial allowance.