Plant and machinery allowances—fixtures
Produced in partnership with Martin Wilson
Plant and machinery allowances—fixtures

The following Tax practice note Produced in partnership with Martin Wilson provides comprehensive and up to date legal information covering:

  • Plant and machinery allowances—fixtures
  • Definition of a fixture
  • Examples of fixtures
  • Interest in relevant land
  • Construction expenditure—new fixtures
  • Acquisition of a new interest in land with existing fixtures
  • Acquisition of an existing interest in land including fixtures
  • Making the claim—construction/refurbishment projects
  • Making the claim—the fixed value requirement
  • Section 198 joint election
  • More...

A taxpayer may be able to obtain tax relief for expenditure on fixtures by claiming plant and machinery allowances. For more on the availability of plant and machinery allowances generally, see Practice Note: Plant and machinery allowances—types and rates and for more on how allowances are claimed and calculated see Practice Notes: How plant and machinery allowances are claimed—income tax and How plant and machinery allowances are claimed—corporation tax.

In order to qualify for allowances, expenditure on fixtures must meet both the same requirements as expenditure on other types of plant, and some additional rules that are specific to fixtures.

The main requirements are:

  1. the expenditure must be capital

  2. it must be on the provision of the fixture, wholly or partly for the purposes of a qualifying activity (such as a trade or property business) carried on by the taxpayer

  3. the fixture must qualify as plant or machinery

  4. the taxpayer must own the fixture as a result of incurring the expenditure, and

  5. in the case of second-hand fixtures (fixtures that previously belonged to someone else, as opposed to being installed new), there are further rules described below

Where expenditure is incurred only partly for the purposes of a qualifying activity, allowances will be based on the relevant proportion of the expenditure.

There are special rules in the capital allowances legislation that determine who owns a fixture depending on

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