Particular assets and trades
B3.341 Plant and machinery allowances—caravans, computer software, DVDs, glasshouses and technical libraries
HMRC accepts that a caravan is plant if it does not occupy a fixed site and is regularly moved as part of normal trade usage, even if only from a summer site to winter quarters.
HMRC has made an agreement with the National Caravan Council that a caravan is treated as plant if it occupies a site which has a holiday site certificate whether or not it is moved; this does not extend to caravans on sites which have a residential certificate. The agreement treats as plant water and electricity supplies, sanitary fittings, baths and wash basins but not roads, sanitary blocks, sewage and drainage pipes installed as public health requirements for the site generally or expenditure on proposed sites for individual caravans; if relief is claimed under this agreement, all its terms must be satisfied1. Despite the general prohibition of allowances for caravans on residential sites, a caravan on a fixed site provided by a farmer (but not to any other kind of trader) to house a farm employee is accepted as plant.
Computer software is treated as plant2. Where capital expenditure is incurred by a person carrying on a qualifying activity in acquiring a right to use or otherwise deal with computer software, allowances are due as if the right and the software were plant provided for the qualifying activity and (so long as the person is entitled to the
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