Although there is no statutory definition of ‘plant and machinery’ there is a heavy reliance on case law, CAA 2001, ss 21–23 includes lists of common items which are treated as plant and machinery. This document discusses the definitions of integral features, building, structures and land, overriding exceptions. It also covers case law definition of plant and machinery, two-year test, function test and others..

Points discussed within this guidance note:

> Legislative definition of plant and machinery

As there is no statutory definition of plant and machinery, this note includes a flowchart to illustrate how the legislation then determines whether plant and machinery qualifies for allowances.

> Integral features

Where capital expenditure has become integrated into premises it has been difficult to determine whether plant and machinery allowances are available. The relatively new category of 'integral features' helps simplify expenditure in this grey area by specifying that certain capital costs are plant and machinery

> Buildings

> Structures and land

> Override

> Case law definition of plant and machinery

> Two-year test

> Function test

> Premises test

> Completeness test

> ‘Entity’ or ‘piecemeal’ approach to expenditure


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