Capital Allowances Act 1990 (repealed) (c. 1)

Part II U.K. Machinery and Plant

Modifications etc. (not altering text)

C1 Pt. II (ss. 22–83) modified by Finance Act 1990 (c. 29), s. 87(3)(4)

C2 Pt. II modified (19.9.1994) by Coal Industry Act 1994 (c. 21), s. 68(4), Sch. 4 para. 22; S.I. 1994/2189, art. 2, Sch.

C3 Pt. 2 modified (8.11.1995) by Atomic Energy Authority Act 1995 (c. 37), Sch. 3 para. 20

C4 Pt. 2 modified (8.11.1995) by Atomic Energy Authority Act 1995 (c. 37), Sch. 3 para. 16

C5 Pt. 2 modified (24.7.1996) by Broadcasting Act 1996 (c. 55), s. 149(1)(f), Sch. 7 para. 14(1) (with Sch. 7 para. 14(2))

C6 Pt. 2 restricted (24.7.1996) by Broadcasting Act 1996 (c. 55), s. 149(1)(f), Sch. 7 para. 16

C7 Pt. 2 modified (24.7.1996) by Broadcasting Act 1996 (c. 55), s. 149(1)(f), Sch. 7 para. 15(2)

C8 Pt. 2 modified (24.7.1996) by Broadcasting Act 1996 (c. 55), s. 149(1)(f), Sch. 7 para. 15(3)

C9 Pt. 2 modified (with application in accordance with Sch. 12 para. 11(1) of the amending Act) by Finance Act 1997 (c. 16), Sch. 12 para. 11(3)(b) (with Sch. 12 paras. 13, 14)

Chapter VI U.K. Fixtures

51 Application and interpretation of Chapter VI. U.K.

(1) [F1 This Chapter applies to determine entitlement to allowances under this Part in respect of expenditure on the provision of machinery or plant that is, or becomes, a fixture]; and at any time when, by virtue of this Chapter, any machinery or plant is treated as belonging to any person, no other person shall be entitled to such an allowance in respect of it.

(2) In this Chapter—

• “equipment lessor”, “equipment lessee” and “equipment lease” have the meanings given by section 53;

• [F2 “fixture”, subject to subsection (2A) below, means machinery or plant that is so installed or otherwise fixed in or to a building or other description of land as to become, in law, part of that building or other land;]

• “interest in land” and “lease” shall be construed in accordance with subsection (3) below;

• “relevant land”, in relation to a fixture, means the building or other description of land of which the fixture becomes part;

• [F3 “return” means (subject to section 59C(10)) any return required to be made under the Taxes Management Act 1970 for income tax or corporation tax purposes.]

[F4 (2A) In this Chapter—

• “fixture” includes any boiler, or water-filled radiator, installed in a building as part of a space or water heating system; and

• “relevant land”, in relation to such a fixture, means the building in which it is so installed.]

(3) In this Chapter “interest in land” means—

(a) the fee simple estate in the land or an agreement to acquire that estate;

(b) in Scotland, the estate or interest of the proprietor of thedominium utile (or, in the case of property other than feudal property, of the owner) and any agreement to acquire such an estate or interest;

(c) any leasehold estate in, or in Scotland lease of, the land (whether in the nature of a head-lease, sub-lease or under-lease) and any agreement to acquire such an estate or, in Scotland, lease;

(d) an easement or servitude or any agreement to acquire an easement or servitude; and

(e) a licence to occupy land;

and, except in the context of leasing machinery or plant, any reference in the following provisions of this Chapter to a lease is a reference to such a leasehold estate or, in Scotland, lease as is mentioned in paragraph (c) above or to such an agreement as is mentioned in that paragraph (and, in relation to such an agreement, the expression “grant” shall be construed accordingly).

(4) If an interest in land is conveyed or assigned by way of security and subject to a right of redemption, then, so long as such a right subsists, the interest held by the creditor shall be treated for the purpose of this Chapter as held by the person having that right.

(5) Any reference in this Chapter to a person being entitled to an allowance in respect of any capital expenditure incurred on the provision of a fixture is a reference to a case where—

(a) that person is, for any chargeable period, entitled to a first-year allowance in respect of that expenditure; or

(b) [F5 that person is entitled to have that expenditure] taken into account in determining his qualifying expenditure for a chargeable period for the purposes of section 24(2), (3) and (5) (whether or not an allowance is made to him for that period),

and any reference to a chargeable period for which a person is so entitled is a reference—

(i) to the chargeable period referred to in paragraph (a) above; or

(ii) to the chargeable period referred to in paragraph (b) above; or

(iii) to any chargeable period which is subsequent to that referred to in paragraph (b) above but is not later than the chargeable period in which [F6 he would be required (disregarding section 24(7))] to bring the disposal value of the fixture concerned into account for the purposes mentioned in paragraph (b) above.

[F7 (5A) In this Chapter references to making a claim for an allowance in respect of any expenditure include references—

(a) to making a return in which the expenditure is taken into account, as expenditure on the provision of a fixture, in determining a person’s qualifying expenditure for the purposes of section 24, and

(b) to giving notice of any such amendment of a return as provides for that expenditure to be so taken into account.]

(6) All such assessments and adjustments of assessments shall be made as may be necessary to give effect to the provisions of this Chapter.

[F8 (6A) Where a person who has made a return becomes aware that anything contained in that return has, after being made, become incorrect by reason of—

(a) the making an election under section 59B, or

(b) the operation, in his case, of section 56A(1), section 56B(1) or section 59C(3),

he shall, within three months of first becoming so aware, give notice to an officer of the Board of the amendments that are necessitated in his return in the light of the matter of which he has become aware.]

(7) Where any question arises as to whether any machinery or plant has become, in law, part of a building or other land and that question is material with respect to the liability to tax (for whatever period) of two or more persons, that question shall be determined, for the purposes of the tax of all those persons, by the Special Commissioners who shall determine the question in like manner as if it were an appeal, except that, for the purposes of the determination, all those persons shall be entitled to appear and be heard by, or to make representations in writing to, the Special Commissioners.

[F9 (8) Nothing in this Chapter affects the entitlement of any person to an allowance by virtue of section 154 (allowances in respect of contributions to capital expenditure).]

Textual Amendments

F1 Words in s. 51(1) substituted (retrospectively) by Finance Act 2000 (c. 17), s. 78(2)(6)

F2 Words in s. 51(2) substituted (retrospectively) by Finance Act 2000 (c. 17), s. 78(3)(6)

F3 Words in s. 51(2) inserted (with effect in accordance with Sch. 16 para. 2(6) of the amending Act) by Finance Act 1997 (c. 16), Sch. 16 para. 2(1)

F4 S. 51(2A) inserted (retrospectively) by Finance Act 2000 (c. 17), s. 78(4)(6)

F5 Words in s. 51(5)(b) substituted (with effect in accordance with Sch. 16 para. 2(6) of the amending Act) by Finance Act 1997 (c. 16), Sch. 16 para. 2(2)(a)

F6 Words in s. 51(5)(iii) substituted (with effect in accordance with Sch. 16 para. 2(6) of the amending Act) by Finance Act 1997 (c. 16), Sch. 16 para. 2(2)(b)

F7 S. 51(5A) inserted (with effect in accordance with Sch. 16 para. 2(6) of the amending Act) by Finance Act 1997 (c. 16), Sch. 16 para. 2(3)

F8 S. 51(6A) inserted (with effect in accordance with Sch. 16 para. 2(6) of the amending Act) by Finance Act 1997 (c. 16), Sch. 16 para. 2(4) (with Sch. 16 para. 2(7))

F9 S. 51(8) substituted (retrospectively) by Finance Act 2000 (c. 17), s. 78(5)(6)