Part 2 Plant and machinery allowances

Chapter 14 Fixtures

Persons who are treated as owners of fixtures

181 Purchaser of land giving consideration for fixture

(1)

If—

(a)

after any plant or machinery has become a fixture, a person (“the purchaser”) acquires an interest in the relevant land,

(b)

that interest was in existence before the purchaser’s acquisition of it, and

(c)

the consideration which the purchaser gives for the interest is or includes a capital sum that, in whole or in part, falls to be treated for the purposes of this Part as expenditure on the provision of the fixture,

the purchaser is to be treated, on and after the time of the acquisition, as the owner of the fixture as a result of incurring that expenditure.

F1(2)

Subsection (1) does not apply, and is to be treated as never having applied, if, immediately after the time of the acquisition, a person has a prior right in relation to the fixture.

(3)

For the purposes of F2subsection (2), a person has a prior right in relation to the fixture if he—

(a)

is treated as the owner of the fixture immediately before the time referred to in F3subsection (2) as a result of incurring expenditure on the provision of the fixture,

(b)

is not so treated as a result of section 538 (contribution allowances for plant and machinery),

(c)

is entitled to an allowance in respect of that expenditure, and

(d)

makes or has made a claim in respect of that expenditure.

(4)

Subsection (1) is subject to F4sections 182 and 182A .