Capital Allowances Act 1990

52 Expenditure incurred by holder of interest in land

(1) Subject to subsection (2) below, in any case where—

(a) a person incurs capital expenditure on the provision of machinery or plant either for the purposes of a trade carried on by him or for leasing otherwise than in the course of a trade, and

(b) the machinery or plant becomes a fixture, and

(c) at the time the machinery or plant becomes a fixture he has an interest in the relevant land,

then, subject to sections 53 and 57, on and after that time the fixture shall be treated for the purposes of this Part as belonging to the person concerned in consequence of his incurring the expenditure.

(2) If, in respect of the same fixture, there are two or more persons with different interests in the relevant land to whom, by virtue of subsection (1) above, the fixture would (apart from this subsection) be treated as belonging for the purposes of this Part, the only interest which shall be taken into account under that subsection is—

(a) if one of the interests is an interest falling within section 51(3)(d), that interest;

(b) if paragraph (a) above does not apply but one of the interests is an interest falling within section 51(3)(e), that interest; and

(c) in any other case—

(i) except in Scotland, that interest which is not in reversion (at law or in equity and whether directly or indirectly) on any other interest in the relevant land which is held by any of the persons referred to above; and

(ii) in Scotland, that of whichever of those persons has, or last had, the right of use of the relevant land.