A building outside the United Kingdom is not an industrial
building unless the profit of the trade for which it is used are
assessable under the rules that apply in calculating trade profits
for income tax or Case I Schedule D for corporation tax.
Example Verlaine, a UK resident, builds a factory
in France and leases it to Rimbaud. Verlaine can claim IBA on the
factory only if the profits of the trade for which Rimbaud uses the
factory are assessable Case I Schedule D. If Rimbaud's profits are
assessable only in France there is no IBA due.
