Capital allowances ― property transactions and fixtures

Produced by Tolley in association with Martin Wilson and Steven Bone
Owner-Managed Businesses
Guidance

Capital allowances ― property transactions and fixtures

Produced by Tolley in association with Martin Wilson and Steven Bone
Owner-Managed Businesses
Guidance
imgtext

Capital allowances can be claimed on fixtures within buildings as plant and machinery, but there are several qualifying conditions and computational requirements which make this a complicated area. The following commentary sets out the rules in detail.

Definition of fixtures

A fixture is defined for capital allowance purposes as plant or machinery that is installed or fixed in or to a building or land so as to become, in law, part of that building or land. Examples of fixtures include:

  1. any boiler or water-filled radiator installed in a building as part of a space or water heating system

  2. lifts and escalators

  3. heating, lighting and electrical systems

  4. alarm systems

  5. fitted kitchen units, cupboards and sinks

  6. sanitary appliances, and hot and cold water systems

  7. telephone and data installations

  8. solar panels

  9. electric vehicle charging points

CAA 2001, s 173; CA26025

However, the definition of fixtures is much wider than the list shown above and can include, for example, individually small items

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Martin Wilson
Martin Wilson


Martin Wilson, specialised in capital allowances for 25 years before retirement. He is the author of numerous published works on the subject, including Bloomsbury's Capital Allowances: Transactions & Planning, and the capital allowances content of LexisPSL, Tolley's Tax Guidance, Tolley's Tax Planning and Simon's Tax Planning.

Steven Bone
Steven Bone linkedinicon twittericon

Director at Gateley Capitus


Steven is a tax-qualified Chartered Surveyor who has specialised in tax incentives, including capital allowances and land remediation relief for over 20 years. Previously he held senior specialist positions in 'Big 4' and national mid-tier accountancy firms. Capital allowances underpin income tax and corporation tax calculations by giving tax relief for money spent to buy, build or alter commercial property.Steven works with owner-occupiers, investors and their advisers to provide capital allowances opinions, transaction support and specialist valuations for all types of property.  This includes resolving HM Revenue capital allowances enquiries and giving expert evidence to tribunals and courts.Steven has contributed to many articles and books, including: Bloomsbury Professional's Capital Allowances, Tolley's Tax Planning, RICS's official Guidance Note for surveyors on Capital Allowances and Land Remediation Relief, and Practical Law Company's Practice Note on Commercial Property Standard Enquiry 32 dealing with capital allowances.

Powered by Tolley+

Popular Articles

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more Read more

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more Read more

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more Read more