Paul Farey (AECOM) examines two recent decisions that raise some unique considerations and add to the discussion as to what can qualify for plant and machinery allowances.
In accordance with CAA 2001 s 11 qualifying expenditure for plant and machinery allowances is incurred on the provision of plant or machinery. All further section references are to CAA 2001. There is generally no dispute as to what is machinery but the definition of plant has been the subject of numerous cases over the course of more than two centuries starting with the case of Yarmouth v France (1887) 19 QBD 647 where Lindley LJ found that dray horses were plant.
More recently the courts have attempted to refine the tests as to what qualifies as plant for capital allowances. These tests were eventually distilled down to the functional (or business use) test and the premises (or setting)...
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Paul Farey (AECOM) examines two recent decisions that raise some unique considerations and add to the discussion as to what can qualify for plant and machinery allowances.
In accordance with CAA 2001 s 11 qualifying expenditure for plant and machinery allowances is incurred on the provision of plant or machinery. All further section references are to CAA 2001. There is generally no dispute as to what is machinery but the definition of plant has been the subject of numerous cases over the course of more than two centuries starting with the case of Yarmouth v France (1887) 19 QBD 647 where Lindley LJ found that dray horses were plant.
More recently the courts have attempted to refine the tests as to what qualifies as plant for capital allowances. These tests were eventually distilled down to the functional (or business use) test and the premises (or setting)...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
