The following Owner-Managed Businesses guidance note Produced by Tolley in association with Martin Wilson and Steven Bone provides comprehensive and up to date tax information covering:
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 and also specifically includes any boiler or water-filled radiator installed in a building as part of a space or water heating system. Examples of fixtures include:
lifts and escalators
heating, lighting and electrical systems
sanitary appliances, and hot and cold water systems
telephone and data installations
CAA 2001, s 173
However, the definition of fixtures is much wider than the list shown above and can include, for example, individually small items such as signs and door furniture. Consequently, it is practically inconceivable that a building will not contain assets on which capital allowances could potentially be claimed.
Indeed, it is often easier to define what is not a plant and machinery fixture. In the context of a property transaction, any expenditure on the building itself (that is to say, the ‘bricks and mortar’) and expenditure relating to the land on which the property stands, is excluded from being regarded as in respect of fixtures, and will not qualify for plant allowances.
Such expenditure may qualify for structures and buildings allowances, at much lower rate, see the Structures and buildings allowance guidance note.
In order to claim capital allowances on a fixture the business must own the fixture because they have incurred expenditure on it and also must have an interest in the land or building that the fixture is part of. An interest in land can be a freehold, a lease or just a licence to occupy perhaps because of a rental agreement.
Consequently, it is most unusual that a potential claim will fail because the person incurring expenditure does not have an interest in the building. However, problems can arise in the context of a group of companies. Imagine a situation where a
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
What is quick succession relief?Quick succession relief (QSR) reduces the tax payable when the same property has been subject to more than one charge to IHT. It applies where there have been two chargeable transfers on which tax is payable within a period of five years.Although commonly called QSR,
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were also exempt from
In certain circumstances shareholders may wish to pay dividends other than in proportion to their shareholdings. This aim is typically achieved by one or more shareholders not taking a dividend when it is declared. To effect this, the relevant shareholders must waive their right to dividends from
IntroductionTax equalisation is widely used by multi-national companies or group moving employees from one country to another. It is not a statutory concept but is an arrangement between an employer and employee.The idea behind tax equalisation is that an employee accepting an assignment somewhere