Readers’ forum: Industrial buildings allowance

Before I started advising them my clients who are a married couple acquired a warehouse unit in 1979 and claimed industrial buildings allowances over the next 25 years. They are now divorced and looking to sell the property. The warehouse was not used by them and was just rented out.

My understanding is that there will be no clawback of income tax relief and there are no reliefs on the capital gain subject to reviewing the 31 March 1982 valuation.

Could Taxation readers confirm whether my understanding is correct?

Query 19 701 – Curious.

No clawback of income or capital gains tax relief.

When it first came into force the industrial buildings allowance (IBA) was aimed at productive industry but subsequently widened its scope to include a variety of buildings and structures.

In FA 2008 (Pt 3 s 84 to s 87) the...