Summary
A building located within an enterprise zone, which was leased to a NHS health board for use as a laundry, qualified for an initial industrial buildings allowance of 100%, as the building was used for the purposes of a trade.
Background
The taxpayer was a member of a syndicate, which funded the construction and fitting out of a building located in an enterprise zone. The building was leased to a NHS health board (L) for use as a laundry, which opened in 2003.
L entered into an arrangement with two other NHS health boards for the provision of laundry services. In calculating a charge to the other health boards for this service, L aggregated all its associated costs, and subdivided that figure by the total number of items processed. There was no additional element of charge for profit.
The First-tier Tribunal (FTT) held ([2013] UKFTT
