TTM09400 - Capital Allowances: Industrial Buildings
The definition of an industrial building or structure includes a building or structure used for the purposes of a transport undertaking or a dock undertaking (see CA32200+). It is therefore entirely possible that some assets to be used for the purposes of a company’s tonnage tax trade would qualify under the normal capital allowances regime for industrial buildings allowances.
However, no capital allowances of any kind are available to a tonnage tax company in respect of expenditure on any assets used for its tonnage tax trade.
Where any identifiable part of an industrial building or structure is used for the purposes of a company’s tonnage tax trade, that part is treated for IBA purposes as being used otherwise than as an industrial building or structure (see CA32650).
Balancing charges on industrial buildings within tonnage tax are phased out using the same percentages as for plant and machinery, (see TTM09410).
Residue of qualifying expenditure after sale
There are special rules for calculating the buyer’s entitlement to IBA, (see TTM09420).
Company leaves Tonnage Tax
Similar provisions apply to the computation of unrelieved qualifying expenditure when a company leaves Tonnage Tax, (see TTM09430).
FA00/SCH22/PARA82 (industrial buildings: mixed use)