IBA site (complex)

Background

This schedule can deal with IBA calculations which include notional allowances and disposals where there has been a period of non-qualifying usage. Totals are carried up to the parent schedule.

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Developing the schedule

As many copies as required of the schedule may be obtained by use of the Develop option on an IBA multi site schedule.

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Completing the schedule

Some of the entry cells are described in more detail below:

Description

For accounting periods ending in FY1998 and later periods, you can enter a description of the industrial building.

Year, Original Cost

The user is required to enter for each row details of the year of acquisition and the qualifying original cost.. Typically the additions for each year would be entered on a separate row.

Annual WDA Rate

The default rate set for writing down allowances (WDA) is set as 4% for files before FY2012 and 0% for FY2012 files and onwards. This can be altered as appropriate for old or secondhand buildings. The calculation of writing down allowances takes account of the length of the period. Where necessary, a rate for initial allowances can be entered.

Phasing out of industrial buildings allowance

The allowance for industrial buildings is going to be progressively reduced from 1 April 2008 and will be withdrawn from April 2011. Therefore the WDA will be reduced by 25% for FY 2008, 50% for FY 2009, 75% for FY 2010 and will be withdrawn completely thereafter.

Writing down allowances (WDA) waived

By default any writing down allowances (WDA) waived are apportioned across assets automatically. For FY 2005 files and onwards it is possible to manually allocate WDA waived across individual assets by means of a selector on the schedule. Data entry cells will be displayed for this purpose.

Relevant proceeds

In the case of a disposal, the proceeds entered must relate to the whole of the expenditure on the row concerned. Thus, if there is a part-disposal of an item of expenditure previously entered on one row, the expenditure should be split between two rows before processing the disposal. The proceeds entered should be limited to cost.

Where an industrial building is disposed of a balancing charge/allowance will automatically be calculated. In order to avoid this being calculated, for example where the industrial building is beyond the end of its tax life, set the Relevant proceeds equal, in amount, to the remaining residue. In order for this to reconcile to the Fixed Assets Disposal schedule an equivalent entry will need to be made in the relevant Proceeds if different cell.

Notional Allowances

Where notional allowances are required to be calculated in any period, these should be entered manually in the notional allowances column. The WDA will then be automatically reduced by the amount entered.

Percentage of non-qualifying use on disposal

Where the site disposed of has had a period of non-qualifying usage, the percentage of non-qualifying usage should be entered in the column provided. Balancing allowances / charges are calculated automatically, taking account of any period of non-qualifying use. Any notional balancing adjustment (arising from the period of non-qualifying use and the notional allowances brought forward) is also calculated.

Investment companies

The investment company variant of the schedule is identical to the trading company version, except that allowances are treated as allowances by discharge or repayment of tax. For long periods of account, the movement is duplicated for the second period.

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Standard sub-schedules

The schedule has no standard sub-schedules.

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Carry forward

On carry forward, each line in the earlier year will cause a line to be inserted on the same schedule for the later year. Details of year, cost and rate of writing down allowance will be transferred, and tax written down values and cumulative notional allowances carried forward and brought forward will be linked. In addition, totals carried forward and brought forward will be cross-checked.

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Related errors

Error	How to solve it
Sign error	This error results from the sign conventions used within the software. This error can be resolved by clicking the button.
Excess waiver	This error occurs when the writing down allowances (WDA) disclaimed are in excess of the amount of WDAs actually available. Ensure that the WDAs disclaimed are not in excess of the actual WDAs.
Remove manually entered values above or select to manually allocate WDA waived	For FY 2005 files and onwards where the user has selected not to manually allocate writing down allowances (WDA) waived but has made manual entries these entries are not relevant and should be removed.

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