What is Plant and Machinery?
In accordance with CAA 2001, the following items are examples of plant and machinery qualifying for capital allowances:
Cold water supplies
Heating, ventilation and air conditioning
Lifts, escalators and moving walkways
Safety expenditure at sports grounds
External solar shading
Personal security assets
What can be Claimed?
Purchase of existing property
Development of property
Refurbishment or alteration works to existing property
Expenditure incurred in bringing back into use a building or land which previously derelict
3 IMPORTANT RULES:
Rule 1: Capital allowances save tax, so there must be tax to save.
Rule 2: Capital allowances cannot be claimed by non-taxpayers such as pension funds.
Rule 3: Capital allowances are valuable to a business or person that temporarily has no tax liability. Even if you cannot use the allowances now, they may be of value later or to someone who owns the asset in the future.