The following Tax practice note Produced in partnership with Martin Wilson provides comprehensive and up to date legal information covering:
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:
the expenditure must be capital
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
the fixture must qualify as plant or machinery
the taxpayer must own the fixture as a result of incurring the expenditure, and
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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