Article 172U.K.Eligibility of expenditure
1.In addition to the costs mentioned in Article 34(2), the costs referred to in paragraph 3(c) shall be considered eligible under this component.
The technical assistance measures eligible under Article 34(2) are those referred to in Article 182.
2.In addition to the provisions of Article 34(3), the following expenditure shall not be eligible under this component:
(a)the purchase of agricultural production rights, animals, annual plants and their planting;
(b)any maintenance, depreciation and rental costs;
(c)any cost incurred by public administration in managing and implementing assistance.
3.Notwithstanding the provisions of Article 34(3), in the case of investment:
(a)eligible expenditure shall be limited to the construction or improvement of immovable property;
(b)the purchase or lease-purchase of new machinery and equipment, including computer software up to the market value of the asset shall be considered as eligible; other costs connected with the leasing contract, such as lessor's margin, interest refinancing costs, overheads and insurance charges, shall not be eligible;
(c)general costs linked to expenditure referred to in points (a) and (b), such as architects’, engineers’ and other consultation fees, feasibility studies, the acquisition of patent rights and licences shall be eligible up to a ceiling of 12 % of the costs referred to in points (a) and (b).
Detailed provisions for the implementation of this paragraph shall be set out in sectoral agreements as defined in Article 7 or financing agreements as defined in Article 8.
4.Investment projects shall remain eligible for Community financing provided they do not, within five years from the final payment by the operating structure, undergo a substantial modification.