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..

Legislative definition of plant and machinery

The general rule allowing capital allowances on plant and machinery is given at CAA 2001, s 11. There is no statutory definition of 'plant and machinery' so there is a heavy reliance on case law.

However, CAA 2001, ss 21-23 includes lists of common items which are treated as plant. Before consider-ing case law you should check whether the item is specified as eligible for plant and machinery allowances in these sections or not.

The flowchart below illustrates how the legislation then determines whether plant and machinery qualifies for allowances.

Integral features

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