It was announced in the 2007 Budget that the system of industrial buildings allowances (IBAs) is to be phased out.  The phasing-out complete in 2011 will be achieved by reducing the rate of tax relief by one-quarter each year over 4 years.

If a taxpayer acquires property second-hand and is claiming over the remaining IBA life, for example, say 10% over ten years, this will reduce to 7.5%, then 5% then 2.5% then nil.

Subsequently, it is more important than ever to maximise plant and machinery allowances - for most taxpayers with commercial investments this is now the optimum tax relief and by 2011 will be the only way of obtaining any tax relief for expenditure on commercial property.

   a) What are Capital Allowances?
   b) Plant & Machinery Allowances
   c) Retrospective Claims   
   d) Methodology