CA34300 - IBA: Initial allowance: Expenditure incurred in the year ended 31 October 1993

Expenditure on constructing an industrial building or buying an unused one incurred in the year ended 31 October 1993 qualifies for initial allowance at a rate of 20% provided that the building was in use by 31 December 1994. An initial allowance may have been made before the building was brought into use. If it was still unused on 31 December 1994 the initial allowance was withdrawn.

Where a building was bought unused from someone other than a property developer the purchase price qualified for initial allowance to the extent that the construction expenditure was incurred in the year ended 31 October 1993.

Where a building was bought unused from a developer in the year ended 31 October 1993 the whole purchase price qualified for initial allowance even if the building was constructed before 1 November 1992.